The Rhode Island Student Loan Authority priced $93.1 million of bonds backed by Federal Family Education Loan Program loans, according to a regulatory filing.
The interest rates on the notes are one-month LIBOR 70 basis points. Payments begin on August 1, 2014 and will be paid monthly until the notes mature in October 2028. The weighted average seasoning for the federal loans backing the deal is 44 months.
The series 2014-1 notes have been rated AAA’/ AA+’ respectively by Fitch Ratings and Standard & Poor’s.
Bank of America Merrill Lynch is the lead underwriter on the deal.
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.