Sallie Mae plans to issue the first private student loans backed ABS via its $1.1 billion SLM Private Education Loan Trust 2013-A (SLM 2013-A).

The deal has been assigned preliminary ratings by Moody’s Investors Service and Standard & Poor’s. The capital structure includes $833 million ‘Aaa’/‘AAA’ rated, floating rate notes; and $143 million, of ‘Aaa’/‘AAA’ rated fixed rate notes. The structure will also issue $132 million of ‘A2’/‘A’ rated, fixed rate notes. Barclays Capital, Credit Suisse, and RBC Capital Markets are lead managers on the deal.

The collateral underlying the transaction consists of Sallie Mae's private student loans, which are loans the government does not guarantee. The pool characteristics, including a weighted-average FICO score of 741 at the time of the loan application and co-borrowers on 80.31% of the loans, according to the S&P presale report.

The notes will have initial overcollateralization of 15.25% and a structural feature that will trap the excess spread to build the transaction's initial overcollateralization to a target level of 40% with a floor of $13.1 million.



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