SLM Corporation Closes $500 Million Offering of 6.500% Senior Notes Due 2030

SLM Corporation recently announced the closure of an offering of $500,000,000 aggregate principal amount of 6.500% Senior Notes due 2030. This offering, concluded on January 31, 2025, entails Notes registered under the Securities Act of 1933. The notes, bearing interest at a rate of 6.500% per annum, will see interest payments twice annually starting July 31, 2025, and mature on January 31, 2030.

The Company disclosed that the net proceeds from this move, combined with existing cash reserves, are earmarked for fully redeeming $500 million aggregate principal amount of its 4.200% senior notes due 2025. This redemption includes settling accrued and unpaid interest along with any make-whole premium applicable.

The offering was managed through an underwriting agreement with J.P. Morgan Securities LLC and Barclays Capital Inc. Acting as representatives of the underwriters involved, the agreement outlines the terms and conditions guiding the offering and sale of the Notes, alongside indemnification, contribution obligations, and standard agreement conditions.

Moreover, the Company issued a formal notice for the redemption of all $500,000,000 principal amount of its outstanding 4.200% Senior Notes due 2025. This redemption procedure is set to occur on February 18, 2025, at a predetermined aggregate redemption price.

The official statement by SLM Corporation underlines that the description of the indenture and the notes does not signify completeness. It further references the Supplemental Indenture, the form of the Notes, and the associated legal opinion by Davis Polk & Wardwell LLP, which are integral parts of the Registration Statement.

This strategic financial move aims to position SLM Corporation for enhanced financial standing and operational flexibility, aligning with the Company’s long-term growth plans and financial objectives.

The complete documentation regarding this development, including the Underwriting Agreement and relevant exhibits, is available for review on the official Form 8-K submitted to the U.S. Securities and Exchange Commission.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read SLM’s 8K filing here.

SLM Company Profile

SLM Corporation, through its subsidiaries, originates and services private education loans to students and their families to finance the cost of their education in the United States. It is also involved in the provision of retail deposit accounts, including certificates of deposit, money market accounts, and high-yield savings accounts; and interest-bearing omnibus accounts.