Sallie Mae sells residual interest in three federally guaranteed student loan trusts

Monday, June 17, 2013

Sallie Mae, formally SLM Corporation, announced the creation of the SLM Student Loan EDC Repackaging Trust 2013-M1. Through this trust, Sallie Mae sold at face value $225 million of BBB-rated bonds with a 3.05-year weighted average life and a 3.5 percent coupon rate. The sale also included the entire residual interest of the trust.

The SLM Student Loan EDC Repackaging Trust 2013-M1 is collateralized by the residual interests from SLM Student Loan Trusts 2006-8, 2006-9 and 2007-1. Sallie Mae will continue to service the student loans in the underlying trusts under existing agreements. The transaction reduced student loan assets by $6.6 billion and related liabilities by $6.4 billion. The gain from the transaction will add approximately $.23 to Sallie Mae’s second-quarter 2013 GAAP and core diluted earnings per share.

More info from Sallie Mae.