The Rhode Island Student Loan Authority plans to issue $93 million of bonds backed by federal family education loan program loans, according to a deal term sheet.

The series 2014-1 notes have been rated ‘AAA’/ ‘AA+’ respectively by Fitch Ratings and Standard & Poor’s.  

The notes have credit enhancement at 9.11% and are due on October 2, 2028.

Interest rates on the notes are indexed to one-month LIBOR plus a spread paid on the monthly distribution date, commencing August 1, 2014.

Approximately 58.12% of the student loans were originated after July 1, 2006, which entitles them to a 97% guaranteed reimbursement of principal and accrued interest.

Bank of America Merrill Lynch is the lead manager on the deal.

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