RESTON, Va., Feb. 29, 2008—SLM Corporation (NYSE: SLM), commonly known as Sallie Mae, announced today that it has closed $31.3 billion in asset-backed commercial paper (ABCP) and term loan facilities that will provide funding for the company’s federally guaranteed and private education loans.
These new, 364-day financing facilities, which are expected to increase to as much as $34 billion, include commitments from Bank of America, JPMorgan Chase, Barclays Capital, Deutsche Bank, Credit Suisse, The Royal Bank of Scotland and UBS.
“I am happy to announce that we have secured this major financing in the midst of very difficult credit market conditions,” said Albert Lord, CEO. “While today’s credit market issues continue to have broad impact, we will continue to have funding to meet the needs of our student loan customers and their families.”
Funding under the commitments is expected to begin the first week of March. The new facilities’ terms and conditions are consistent with the company’s assumptions for 2008 diluted earnings per share guidance.
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This press release contains “forward-looking statements” including expectations as to future market share, the success of preferred channel originations and future results. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Because such statements inherently involve risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks include, among others, changes in the terms of student loans and the educational credit marketplace arising from the implementation of applicable laws and regulations, and from changes in such laws and regulations, adverse results in legal disputes, changes in the demand for educational financing or in financing preferences of educational institutions, students and their families, and changes in the general interest rate environment. For more information, see the company's filings with the Securities and Exchange Commission, including the forward-looking statements contained in the company’s Supplemental Financial Information Fourth Quarter 2007. All information in this release is as of Feb. 29, 2008. The Company does not undertake any obligation to update or revise these forward-looking statements to conform the statement to actual results or changes in the Company’s expectations.
For more information contact:
Tom Joyce (703) 984-5610 (media)
Martha Holler (703) 984-5178 (media)
Steve McGarry (703) 984-6746 (investor)
Joe Fisher (703) 984-5755 (investor)
SLM Corporation (NYSE:
SLM), commonly known as Sallie Mae, is the nation’s leading provider of saving- and paying-for-college programs. The company manages nearly $172 billion in education loans and serves 10 million student and parent customers. Through its Upromise affiliates, the company also manages more than $19 billion in 529 college-savings plans, and is a major, private source of college funding contributions in America with 9 million members and $450 million in member rewards. Sallie Mae and its subsidiaries offer debt management services as well as business and technical products to a range of business clients, including higher education institutions, student loan guarantors and state and federal agencies. More information is available at
www.salliemae.com. SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.