Navient priced its upsized, $1 billion Federal Family Education Loan Program (FFELP) securitization.
The deal, called NAVSL 2014-8, began marketing last week and was upsized by $258 million on investor demand. Navient sold the 6.3-year senior bond at a spread of 60 basis points over one-month Libor, according to an Interactive Data report. DBRS rated the notes AAA.’
The pool consists of approximately 47.7% unsubsidized Stafford loans, 43.5% subsidized Stafford loans, 8.3% PLUS loans and 0.5% SLS loans. Approximately 20.0% of the pool is rehabilitated loans, which are those that have defaulted and been restructured under the terms of the Higher Education Act of 1965.
Navient was spun off from SLM Corp. in April. It is the largest servicer of education loans, with a portfolio of $300 billion in loans to more than 12 million borrowers. The firm has completed $3 billion of 8 FFELP securitizations and $1.1 billion of private-student loan student loans securitizations this year.
In August, the company priced six series of notes (NAVSL 2014-2 through 2014-7). Each series offered two tranches of notes, rated AAA’/Aaa’ and AA’/Aa1’ respectively, by Fitch Ratings and Moody’s Investors Service. All of the AAA/Aaa’ rated, class A notes throughout each series are due March 2043, the class B, AA’/ Aa1’ notes are due June 2054.