Sallie Mae buyout financing to include $12.5 billion term loan, $4 billion bonds

By Sara Rosenberg

New York, May 29 - SLM Corp., otherwise known as Sallie Mae, detailed its buyout financing package, including plans for a $12.5 billion seven-year senior secured term loan and $4 billion of senior secured second-lien notes, according to a PREM14A that was filed with the Securities and Exchange Commission late Friday.

The bonds, which will be issued in a Rule 144A offering or other private placement, are backed by a commitment for a $4 billion senior secured second-lien bridge loan.

Bank of America and JPMorgan are the co-lead arrangers and joint bookrunners on the term loan and the bridge loan.

Under the buyout agreement, SLM is being acquired by an investor group led by J.C. Flowers & Co. for about $25 billion, or $60.00 per share of common stock.

J.C. Flowers along with Friedman Fleischer & Lowe will invest $4.4 billion and own 50.2% of the company, and Bank of America and JPMorgan Chase each will invest $2.2 billion and each will own 24.9%.

The transaction will require the approval of Sallie Mae's stockholders, is subject to required regulatory approvals and is expected to close in late 2007.

Sallie Mae is a Reston, Va., saving- and paying-for-college company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.