Sallie Mae accepts $148.93 million tendered series B preferreds

By Taylor Fox

New York, Nov. 25 – Sallie Mae announced the results of its cash tender offer to purchase up to two million shares of its floating rate non-cumulative preferred stock, series B, (Cusip: 78442P502), according to a news release.

As of the 11:59 p.m. ET Nov. 24 expiration date, 1,489,304 securities were validly tendered and not withdrawn, equal to $148.93 million principal amount.

Because the total tendered amount is less than the maximum share amount, Sallie Mae has accepted for purchase all such securities tendered.

The consideration for each security tendered and accepted for purchase offer will equal $45 plus an amount equal to accrued dividends.

As previously reported, each preferred share has a liquidation preference of $100, and there is $400 million aggregate liquidation preference outstanding.

The offer was conditioned on, among other things, Sallie Mae receiving proceeds of at least $500 million from an issuance of senior debt securities. The company previously announced that it priced $500 million of 4.2% senior notes due 2025, at which time the financing condition would be satisfied.

The settlement date is expected to be Nov. 30.

J.P. Morgan Securities LLC (866 834-4666, 212 834-8553) is the dealer manager for the offer.

D.F. King & Co., Inc. (877 283-0322, 212 269-5550) is the tender agent and information agent.

Sallie Mae is a Newark, Del., provider of student loans.

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