Missouri Higher Education wraps tender offer for auction-rate bonds

By Susanna Moon

Chicago, April 17 - The Higher Education Loan Authority of the State of Missouri said holders tendered $32.2 million of student loan auction-rate bonds in the offer that expired at 5 p.m. ET on April 12.

The total purchase price is $30,251,000, plus accrued interest, according to a news release.

As previously noted, the authority offered to purchase the student loan auction-rate bonds issued under its Eleventh General Student Loan Program Bond Resolution adopted on Feb. 4, 1994. The total purchase price was subject to a $125 million cap.

The notes eligible for the offer and the minimum amount that needed to be offered under the tender offer are noted in the table below.

The maximum tender price was $950 per $1,000 principal amount of the taxable senior bonds, $880 for the tax-exempt subordinated bonds and $850 for the taxable subordinated bonds.

As of the original deadline, holders had tendered $32.1 million of taxable senior bonds at tender prices not higher than the maximum tender price. No other bonds had been tendered at that time.

The authority had planned to purchase tendered bonds at the price specified by the tendering holder plus accrued interest. The bonds within a series that was accepted for purchase was generally to be selected in order of increasing tender price, according to a previous release.

The offer began on March 16 and was originally set to end at 5 p.m. ET on April 5.

The dealer manager was Morgan Stanley & Co. LLC (212 762-7407 or 800 223-2440). The information agent and tender agent was D.F. King & Co., Inc. (212 809-8838, 800 431-9643 or, for banks and brokers, 212 269-5550).

Higher Education Loan Authority of Missouri tender offer

Series Outstanding amount Minimum denomination for offer

Taxable senior bonds

1999MM $10 million $50,000

2001A $28.7 million $50,000

2001C $10.35 million $50,000

2001D $6.75 million $50,000

2001E $9.95 million $50,000

2001UU $50,000 $50,000

2002D $3 million $100,000

2002G $20 million $100,000

2002I $100,000 $100,000

2002L $5 million $100,000

2003A $100,000 $50,000

2003C $800,000 $50,000

2003D $450,000 $50,000

2003E $22.55 million $50,000

2003F $500,000 $50,000

2004D $4.95 million $50,000

2004E $26.75 million $50,000

2004F $31.5 million $50,000

2004H $9.35 million $50,000

2004I $2 million $50,000

Tax-exempt subordinated bonds

1996K $14.8 million $50,000

1997S $13.15 million $50,000

1998X $3.85 million $50,000

1999LL $21.55 million $50,000

Taxable subordinated bonds

2001XX $50,000 $50,000

2002M $200,000 $100,000

2002N $5.1 million $100,000

2004K $34.1 million $50,000

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