Sallie Mae said on Thursday announced the sale of $225 million of BBB-rated bonds with a 3.05-year weighted average life and a 3.5% coupon rate via its SLM Student Loan EDC Repackaging Trust 2013-M1.

The issuer announced the deal in April but pulled it because of the wider bids on the bonds, according to several market reports. Sallie Mae was offering the bonds two months ago at the 3.5% coupon rate.

Fitch Ratings assigned preliminary ratings of ‘BBB’ on the $225 million 2013-M1 notes that are backed by the ownership certificates of residual interests in SLM Student Loan Trust 2006-8, 2006-9 and 2007-1 (the underlying trusts).

Fitch currently rates the senior and subordinate notes issued from the underlying trusts ‘AAA’ and ‘BBB’, respectively.

Sallie Mae will continue to service the student loans in the underlying trusts under existing agreements.

The transaction reduces the issuer’s 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.

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