Sallie Mae Bank is readying $382 million of bond backed by a pool of private student loans, according to a presale report from Standard & Poor’s.
The deal, SMB Private Education Loan Trust 2014-A, is backed by loans that will provide private funding for students enrolled in traditional, four-year programs (96.9% of the pool), two-year programs (2.7%), and proprietary and vocational programs (0.4%).
The 2014-A transaction is the first deal to be backed exclusively by Sallie Mae Bank’s Smart Option private student loans and the firs transaction to offer fixed-rate loans.
S&P assigned preliminary AAA’ ratings to four tranches of notes, including the $118 million class A-1 notes that will be pegged to one-month Libor. The fixed-rate $68 million class A-2A notes, the $68 million class A-2B notes—that will be offered at one-month Libor plus a spread—and the $50 million class A-3 notes (also to be offered at one-month Libor plus a spread) all received provisional triple-A status.
The underwriters are Credit Suisse and RBC.
Sallie Mae Bank is a subsidiary of SLM Corp.