Student Loan Consolidation ups tender cap, extends Dutch offer

By Jennifer Chiou

New York, March 2 - Student Loan Consolidation Center Student Loan Trust I announced an additional increase to the maximum principal amount of notes it will purchase in its Dutch auction tender offer. It will now accept up to $647.3 million of the securities, after having previously increased the cap to $647.1 million from $500 million.

The offer will now end at 10:30 a.m. ET on March 8, extended from 8 a.m. ET on March 2. As of the prior deadline, holders had tendered $647.3 million of the notes.

The following senior series 2002A and 2002-2A auction-rate student loan asset-backed notes are eligible for the offer:

• $40.3 million of series 2002A-1 notes;

• $66.65 million of series 2002A-2 notes;

• $48.7 million of series 2002A-3 notes;

• $74.2 million of series 2002A-4 notes;

• $75 million of series 2002A-5 notes;

• $53.8 million of series 2002A-6 notes;

• $75 million of series 2002A-9 notes;

• $69 million of series 2002A-11 notes;

• $75 million of series 2002A-13 notes;

• $46.5 million of series 2002A-14 notes;

• $74.5 million of series 2002A-15 notes;

• $53.3 million of series 2002A-16 notes;

• $59.2 million of series 2002A-17 notes; and

• $47 million of series 2002A-18 notes.

Each series had an initial amount of $75 million.

On Feb. 2, the trust announced that holders had tendered $647.1 million of notes.

For all series, the acceptable bid price range is $45,000 to $47,000. This includes a $2,500 early tender premium to be paid by Goal Financial, LLC (formerly Route 66 Ventures, LLC) for each $50,000 of notes tendered by 5 p.m. ET on Jan. 28, the early tender deadline.

Student Loan will accept the lowest bid prices first.

Certain of the notes have auction dates occurring on or prior to the offer deadline. Tendering holders of those notes will not be permitted to sell their securities in connection with any subsequent auction date, according to a news release.

The offer began on Jan. 14, and withdrawal rights expired on Jan. 28.

The Alexandria, Va.-based trust reiterated that it is in the process of privately placing student loan asset-backed notes, series 2011-1, and anticipates that the proceeds will be enough to satisfy the tender offer's financing condition.

The dealer manager is Barclays Capital Inc. (800 438-3242 or 212 528-7581). The information agent and depositary is Global Bondholder Services Corp. (212 430-3774 for banks and brokers, others call 866 857-2200).

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