Sallie Mae plans to issue a $746.8 million securitization of government guaranteed student loans.

The deal, SLM Student Loan Trust 2013-6, is backed by Federal Family Education Loan Program (FFELP) non-consolidation loans that are reinsured by the U.S. Department of Education for at least 97% of defaulted and accrued interest.

The deal is the lender’s sixth securitization of FFELP loans so far this year. Barclays and RBC Securities are joint-lead managers and it is expected to price this week.

Moody’s Investors Service and Fitch Ratings have assigned preliminary ratings on the floating-rate notes. The structure will offer investors $199.3 million of triple-A rated, class A1 notes with a weighted average life of 1.25-years; $144 million of triple-A rated, class A2 notes with a weighted average life of 3.25-years; and $382.3 million of triple-A rated, class A3 notes with a weighted average life of 6.82-years.

The $20.6 million, class B notes structured with a weighted average life of 9.11-years have been assigned a preliminary single-A ratings.

Student loans ABS stood at $231 billion as of the third quater of 2013, according to data published by the Securities Industry and Financial Markets Association, and government-guaranteed deals accounted for $189 billion. 

 

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