Brazos Higher Education Authority is in the market with its Series 2010-1 FFELP-backed SLABS transaction.
According to a Fitch Ratings presale report, most of the proceeds of the over $1 billion offering are going to for the refund of all the Class-A auction-rate notes and certain subordinate class-B auction-rate notes that are held under the original master indenture.
Fitch added that the existing Class-B subordinate auction-rate notes that are not refunded will be restructured into Libor-indexed notes, which will not be rated.
The trust collateral comprises 100% FFELP student loans, the rating agency said. The trust collateral's credit quality is high based on the guarantees provided by the deal’s eligible guarantors as well as the reinsurance from the Department of Education of at least 97% of principal and accrued interest for the FFELP loans.