SLM Corporation is marketing an $825 million student loan securitization deal via the private placement market.
The deal, SLM Private Education Loan Trust 2011-B will offer investors three classes of senior notes that have been rated 'Aaa(sf)' by Moody's Investors Service. Two tranches will offer floating rate notes and one tranche will offer fixed rate notes.
The ratings are based on an expected 17.72% overcollateralization at closing, a non-declining reserve account that is expected to be fully funded at closing at 0.25% of the initial loan balance, excess spread that is expected to be approximately 4 to 8% per annum, structural features that trap excess
spread to build the overcollateralization to a target level of 30%, and a cash capitalization account that is expected to be fully funded at closing in the amount of $1.82 million.