Navient, the student loan servicer spun off from Sallie Mae in April, priced its first post-split student loan securitization on top of, or inside the corresponding class from the previous SLM FFELP transaction, SLMA 2014-2.
The $747 milliondeal, NAVSL 2014-1, is backed by Federal Family Education Loan Program loans. The AAA’ rated, class A1 note with a weighted average life of 1.25-years priced at one-month Libor plus 25 basis points, according to an Interactive Data report. The AAA’ rated, 3.28-years class A2 notes, priced at one-month Libor plus 31 basis points. The 6.79-years, class A3, 'AAA' rated notes priced at at one-month Libor plus 52 basis points
By comparison Sallie Mae priced it’s March FFELP ABS deal’s A-1 and A-2 notes, which have similar tenors as the Navient deal, priced at one-month Libor plus 25 basis points and one-month Libor plus 35 basis points, respectively.
Sallie Mae's A3 notes structuered with a weighted average life of 6.80-years priced at one-month Libor plus 59 basis points.
Navient assumed the servicing role previously provided by Sallie Mae, which began servicing FFELP loans in the early 1980s and private student loans in the early 1990s. Navient currently services over $300 billion of student loans, according to the Fitch Ratings presale report
FFELP-backed student loans securities accounted for $5.9 billion of the $7.1 billion of student loan ABS that has been issued year-to-date according to Standard & Poor’s.
The latest deal to price is Nelnet’s $385 million FFELP student loan, NSLT 2014-4 ABS. According to Standard & Poor's, the six-year senior tranche priced at one month Libor plus 54 basis points.
