Indiana Secondary Market for Education Loans starts $40 million tender offer for auction-rate bonds

By Angela McDaniels

Tacoma, Wash., Dec. 22 - Indiana Secondary Market for Education Loans, Inc. has begun a modified Dutch auction tender offer for $1.605 billion of its auction-rate bonds, according to a notice to bondholders.

The offer includes series 1998 bonds as well as series 2000 through 2007 bonds. Their maturities range from Dec. 1, 2030 through Dec. 1, 2047.

The issuer said it will have up to approximately $40 million available to purchase the bonds.

Bondholders who wish to participate can submit competitive offers at prices of their choosing or maximum price offers without an offer price.

Under the latter option, a bondholder does not submit a price but rather asks to receive the highest price paid to any other bondholder. Holders who choose this option will receive higher priority.

Accrued interest will be added to the purchase price.

The issuer said it does not plan to buy bonds at prices greater than or equal to par.

The offer will expire at 5 p.m. ET on Jan. 20.

Trustee Wells Fargo Bank, NA is acting as the tender agent. Bondholders can also direct questions to the issuer at 317 715-9000.

The non-profit is based in Indianapolis.

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