By Paul Deckelman
New York, June 12 - SLM Corp. came to market on Tuesday with a quickly shopped and upsized, split-rated (Ba1/BBB-/BBB-) add-on to one of the two series of bonds it sold in a giant-sized deal earlier this year, high-yield market sources said.
The Newark, Del.-based education financing company upsized its offering of 6% notes due 2017 to $350 million from the originally planned $250 million.
The notes priced 98.517 to yield 6 3/8%.
The transaction was an SEC-registered deal.
Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC were the bookrunners on the deal, which was reported by syndicate sources to have come off the high-grade desks of the banks involved.
Proceeds will be used for general corporate purposes.
The deal was structured as an add-on to the $750 million of those 6% bonds which SLM sold earlier this year as part of an upsized two-part offering.
That megadeal, increased from an originally planned $1 billion, priced on Jan. 24. It consisted of $750 million of the 6% notes, upsized from $500 million, which priced at 98.942 to yield 6¼%, and $750 million 7¼% notes due 2022. The latter tranche, which was also upsized from an original $500 million, priced at 98.264 to yield 7½%.
| Issuer:: | SLM Corp.
|
| Issue: | Senior unsecured notes (add-on to $750 million priced on Jan. 24)
|
| Amount: | $350 million, upsized from original $250 million
|
| Maturity: | Jan. 25, 2017
|
| Bookrunners: | Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC
|
| Coupon: | 6%
|
| Price: | 98.517
|
| Yield: | 6 3/8%
|
| Spread: | 563.33 bps over Treasuries
|
| Trade Date: | June 12
|
| Settlement: | June 18
|
| First pay: | July 25
|
| Ratings: | Moodys: | Ba1
|
| S&P: | BBB-
|
| Fitch | BBB-
|
| Marketing: | Quick to market
|
| Distribution: | SEC Registered
|
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