Sallie Mae plans to issue a $1.2 billion securitization of Federal Family Education Loan Program (FFELP) loans.

The deal, SLM 2013-1, follows last week’s pricing of Sallie Mae’s Repackaging Trust 2013-R1.

Fitch Ratings and Moody's Investors Service assigned preliminary ratings to the issuer’s latest deal. The capital structure includes three class-A, rated 'AAA'/'Aaa'  and class b notes, rated ‘A+’/'A1'.

The trust collateral is backed by FFELP loans with guaranties provided by eligible guarantors and reinsurance provided by the U.S. Department of Education (ED) for at least 97% of principal and accrued interest, according to Fitch presale report.

Standard & Poor's rated Sallie’s $253.65 million Repackaging Trust 2013-R1, issued at the end of last week. The capital structure issued ‘AAA’ rated, class A notes that priced at a coupon of 1.50%, according to a Sallie Mae press release.

The student loans contained in the underlying trusts are not guaranteed or reinsured under the FFLEP or any other federal student loan program. The loans were made under various loan programs that Sallie Mae administered or sponsored to provide private funding for students.

S&P said in the presale report that proceeds from the deal would be used to acquire auction-rate notes that were  previously issued by the three, 2003 vintage, Sallie Mae’s private student loan asset-backed securities (ABS) trusts.

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