Indiana Secondary Market to spend up to $60 million in bond tender

By Tali David

Minneapolis, Nov. 4 - Indiana Secondary Market for Education Loans, Inc. announced a tender offer for some of its auction-rate bonds.

The issuer said it has about $60 million available to buy bonds.

An offer to sell may be made on either a competitive basis, that is, at an offer price specified by the bond owner; or a maximum price basis, that is, without specifying an offer price, according to a release. Tenders at the maximum price will receive the highest price paid to any holder of those bonds.

Pricing will be set using a modified Dutch auction. All holders will receive the price set for a particular issue.

If there are no competitive offers for a particular bond, the issuer will set the price.

The issuer said it will also pay accrued interest.

It said it does not plan to buy any securities or prices of par or higher.

The invitation will expire at 5 p.m. ET on Dec. 2. The results will be announced on Dec. 7, and the second look period will start the same day. The second look ends on Dec. 14. Settlement is scheduled for Dec. 20.

Under the second look, Indiana Secondary Market may allow holders who submitted bids at more than the accepted price to resubmit at the purchase price.

The issuer currently has $1,445,800 in outstanding auction-rate bonds maturing from Dec. 1, 2030 to Dec. 1, 2047.

UMB Bank, NA is the agent.

The company is an Indianapolis-based secondary market for Federal student loans.

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