Student Loan Consolidation accepts $647.3 million tendered notes

By Jennifer Chiou

New York, March 16 - Student Loan Consolidation Center Student Loan Trust I announced that it accepted $647.3 million of tendered notes in its Dutch auction offer to purchase up to $648.2 million of several series of asset-backed notes.

As previously reported, the cap was increased three times. It was originally $500 million before being increased to $647.1 million and then to $647.3 million.

The offer ended at 10:30 a.m. ET on March 15, extended from 10:30 a.m. ET on March 8 and 8 a.m. ET on March 2 before that.

The total tenders are unchanged as of 10:30 a.m. ET on March 8.

On March 15, the trust said that it received proceeds from a private placement of $602 million of a new series 2011-1 of notes that, together with certain additional funds, satisfied the financing condition of the offer.

The following senior series 2002A and 2002-2A auction-rate student loan asset-backed notes were 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.

Purchased notes will be retired.

For all series, the acceptable bid price range was $45,000 to $47,000. This included 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 accepted the lowest bid prices first.

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

The series 2002-2A-14 notes had an auction on March 9, the series 2002-A4 had an auction March 10, the series 2002-2A-11 notes had an auction March 14, and the series 2002A-5 notes had an auction on 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. The tender offer was 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 was Barclays Capital Inc. (800 438-3242 or 212 528-7581). The information agent and depositary was Global Bondholder Services Corp. (212 430-3774 for banks and brokers, others call 866 857-2200).

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