FinanSure tenders for series 2007-1 auction-rate student loan notes

New York, June 16 - FinanSure Student Loan Master Trust I announced a cash tender offer for all of its 2007-1 senior auction-rate student loan asset-backed notes not owned by RBC Capital Markets Corp.

The issuer is offering $975 per $1,000 principal amount for each of the six classes covered by the tender. The classes are A-1, A-2, A-3, A-5, A-6 and A-7.

Holders will also receive accrued interest up to but excluding the settlement date.

The tender ends at 5 p.m. ET on June 23.

Funding is expected to come from the sale or some or all of the issuer's student loans to "a major financial services company."

FinanSure also said it has entered into an agreement with RBC allowing it to buy all of its senior and subordinate auction-rate student loan asset-backed notes owned by RBC. The issuer added that it expects to buy the notes only if the tender is successful. It previously agreed with the holder of its junior subordinate student loan asset-backed notes that it would be able to buy back those notes. That purchase is expected to be completed even if the tender is not successful, according to a news release.

The notes covered by the tender and the purchase agreements are all of the issuer's outstanding debt securities.

Conditions to the tender include completion of the sale of the loans and the receipt of tenders for at least 75% of the notes.

RBC Capital Markets is dealer manager (212 618-5640). U.S. Bank NA is the tender agent (800 934-6802).

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