RESTON, Va., Sept. 26 /PRNewswire-FirstCall/ -- SLM Corporation,
commonly known as Sallie Mae, announced today that it has been informed by
a representative of the buyer group led by J. C. Flowers, Bank of America
and JPMorgan Chase that the buyer group does not expect to consummate the
acquisition of Sallie Mae under the terms of the merger agreement. Sallie
Mae firmly believes that the buyer group has no contractual basis to
repudiate its obligations under the merger agreement and intends to pursue
all remedies available to it to the fullest extent permitted by law.
Additionally, Sallie Mae noted the following:
In response to Congress' passage of the College Cost Reduction and
Access Act of 2007 (the "Act") and President Bush's expected signing of the
Act tomorrow, Sallie Mae has measured the Act's adverse changes versus the
impact of similar legislation described in the company's SEC Form 10-K and
concluded such changes would reduce "core earnings" net income, between 1.8
percent and 2.1 percent annually over the next 5 years, using business
assumptions it has shared with the buyer group.
Lastly, in response to shareholder inquiries about interim operating
performance, Sallie Mae noted:
-- Preferred-channel loan originations began the new academic year with
record levels in July and August.
-- The managed private loan loss provision is expected to decline nearly
$100 million in the third-quarter from the second-quarter 2007,
reflecting improved credit quality.
-- Fitch, an independent rating agency, upgraded the ratings of 12
subordinated tranches of Sallie Mae's private education loan asset-
backed securities. The securities' remaining 22 tranches all bear AAA
ratings by Fitch, Moody's and S&P.
SLM Corporation (NYSE: SLM), commonly known as Sallie Mae, is the
nation's leading provider of saving- and paying-for-college programs. The
company manages $153 billion in education loans and serves nearly 10
million student and parent customers. Through its Upromise affiliates, the
company also manages $18 billion in 529 college-savings plans, and 8
million members have joined Upromise to help save for college with rewards
on purchases at nearly 70,000 places. Sallie Mae and its subsidiaries offer
debt management services as well as business and technical products to a
range of business clients, including higher education institutions, student
loan guarantors and state and federal agencies. More information is
available at http://www.salliemae.com. SLM Corporation and its subsidiaries are
not sponsored by or agencies of the United States of America.
SOURCE SLM Corporation
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Related links:
http://www.salliemae.com/
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20030617/SLMLOGO-a
AP Archive: http://photoarchive.ap.org PRN Photo Desk
photodesk@prnewswire.com
http://www.prnewswire.com/comp/827187.html/
CONTACT:
Investor Contact, Steve McGarry,
+1-703-984-6746, Media, Tom Joyce, +1-703-984-5610, both of SLM
Corporation
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