Student Loan Consolidation Center extends tender offer, increases cap

By Angela McDaniels

Tacoma, Wash., March 9 - Student Loan Consolidation Center Student Loan Trust I increased the maximum principal amount of notes it will purchase in its Dutch auction tender offer to $648.2 million, according to a news release from the trust.

This is the third time the cap has been increased. The cap was originally $500 million before being increased to $647.1 million and then to $647.3 million.

The trust also extended the tender offer to 10:30 a.m. ET on March 15 from 10:30 a.m. ET on March 8. It was previously extended from 8 a.m. ET on March 2.

As of 10:30 a.m. ET on March 8, $647.3 million principal amount of notes had been tendered.

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 2002-2A-9 notes;

• $69 million of series 2002-2A-11 notes;

• $75 million of series 2002-2A-13 notes;

• $46.5 million of series 2002-2A-14 notes;

• $74.5 million of series 2002-2A-15 notes;

• $53.3 million of series 2002-2A-16 notes;

• $59.2 million of series 2002-2A-17 notes; and

• $47 million of series 2002-2A-18 notes.

Each series had an initial amount of $75 million.

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.

Some of the notes have auction dates occurring or on before the expiration date. Notes that have been tendered cannot be sold at these auctions, and holders who tender are deemed to have submitted a hold order for those auctions.

The series 2002-2A-14 notes have an auction March 9, the series 2002-A4 have an auction March 10, the series 2002-2A-11 notes have an auction March 14, and the series 2002A-5 notes have an auction March 15.

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

On March 2, the Alexandria, Va.-based trust said it was in the process of privately placing student loan asset-backed notes, series 2011-1, and anticipated that the proceeds would be enough to satisfy the tender offer's financing condition.

The tender offer is also conditioned on Goal Triple B Funding 2, LLC, the residual equity holder of the trust, having obtained consent from some lenders under an existing loan agreement for the new notes issuance.

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).

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.