Sallie Mae lined up a $747 million Federal Family Education Loan Program (FFELP) backed ABS deal.
Moody’s Investors Service assigned preliminary rating to the deal, SLM Student Loan Trust 2013-5. JP Morgan and RBS Securities are lead managers on the deal.
The deal is structured with $153 million of ‘Aaa’-rated , class A-1 notes; $192 million of ‘Aaa’-rated class A-2 notes; $380.4 million of ‘Aaa’-rated, class A-3 notes; and $20,6 million of ‘Aa1’-rated class B notes, according to the Moody’s presale report.
FFLEP loans are reinsured by the U.S. Department of Education for at least 97% of defaulted and accrued interest, which provides substantial loss protection to the securitization trust.