RESTON, Va., Dec. 31 /PRNewswire-FirstCall/ -- SLM Corporation (NYSE:
SLM), commonly known as Sallie Mae, today announced that it has closed the
public offerings of its common stock and mandatory convertible preferred
stock, series C, resulting in total net proceeds of approximately $2.9
billion.
(Logo: http://www.newscom.com/cgi-bin/prnh/20030617/SLMLOGO-a )
The company sold 101,781,170 shares of its common stock at a price of
$19.65 per share and 1,000,000 shares of its 7.25% mandatory convertible
preferred stock, series C. Each share of mandatory convertible preferred
stock, series C, has a $1,000 liquidation preference and is subject to
mandatory conversion on December 15, 2010, into between 41.7188 and 50.8906
shares of the company's common stock, unless previously converted at the
option of the holder. UBS Investment Bank and Citi acted as joint
book-running managers for the offerings.
Sallie Mae intends to use approximately $2.0 billion of the net
proceeds to settle its outstanding equity forward contract with Citibank
and repurchase the 44,039,890 shares of common stock deliverable to Sallie
Mae under the contract. The company and Citibank have agreed to physically
settle the contract, and the company has paid Citibank approximately $1.1
billion, the difference between the contract purchase price and the
previous market closing price on the 44 million shares. Consequently, the
common shares outstanding on the company's year-end balance sheet will
reflect the shares issued in the public offerings and the physical
settlement of the equity forward contract. The company will pay Citibank
the remaining balance due under the contract in early January 2008.
The remaining proceeds from the public offerings will be used for
general corporate purposes.
Shelf registration statements relating to the shares of common stock
and the shares of mandatory convertible preferred stock have previously
been filed with, and have been declared effective by, the Securities and
Exchange Commission. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any sale of
these securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to the registration or qualification under the
securities laws of any such jurisdiction. Any offer will be made only by
means of a prospectus, including a prospectus supplement, forming a part of
the related effective registration statements.
This press release contains "forward-looking statements" including
expectations as to future market share, the success of preferred channel
originations and future results. These statements are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Because such statements inherently involve risks and uncertainties,
actual results may differ materially from those expressed or implied by
such forward-looking statements. Such risks include, among others, changes
in the terms of student loans and the educational credit marketplace
arising from the implementation of applicable laws and regulations, and
from changes in such laws and regulations, adverse results in legal
disputes, changes in the demand for educational financing or in financing
preferences of educational institutions, students and their families, and
changes in the general interest rate environment. For more information, see
the company's filings with the Securities and Exchange Commission,
including the preliminary prospectus supplements relating to the proposed
offerings. All information in this release is as of Dec. 27, 2007. The
Company does not undertake any obligation to update or revise these forward
looking statements to conform the statement to actual results or changes in
the Company's expectations.
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 $160 billion in education loans and serves nearly 10
million student and parent customers. Through its Upromise affiliates, the
company also manages $19 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. SLM Corporation and its
subsidiaries are not sponsored by or agencies of the United States of
America.
SOURCE Sallie Mae
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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:
Media, Martha Holler, +1-703-984-5178,
martha.holler@salliemae.com, or Investors, Steve McGarry,
+1-703-984-6746, steven.j.mcgarry@salliemae.com, both of Sallie
Mae
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