Sallie Mae priced an upsized, $994 million student loan securitization, according to a regulatory filing.
The deal, originally sized at $750 million, is backed by Federal Family Education Loan Program loans that are insured by the U.S. Department of Education. It consists of three classes of floating-rate notes rated AAA’/’Aaa’ by Fitch Ratings and Moody’s Investors Service.
A $272 million tranche due May 2019 pays one-month Libor plus 28 basis points; a $184 million tranche due July 2021 pays Libor plus 38 basis points; and a $510.6 million tranche due February 2019 pays Libor plus 60 basis points;
There is also a subordinated, $27.3 million tranche due June 2047 with preliminary ratings of A’/’Aa1’. It pays Libor plus 150 basis points.
Credit Suisse, Deutsche Bank Securities and J.P. Morgan are the lead managers.