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Sallie Mae Announces LIBOR Transition Updates for Preferred Stock and Asset-Backed Securities
NEWARK, Del.--(BUSINESS WIRE)-- Sallie Mae® (Nasdaq: SLM), formally SLM Corporation, today provided LIBOR transition updates for its Floating-Rate
About this update from Slm Corporation
[{"type":"text","content":" NEWARK, Del.--(BUSINESS WIRE)--\nSallie Mae® (Nasdaq: SLM), formally SLM Corporation, today provided LIBOR transition updates for its Floating-Rate Non-Cumulative Preferred Stock, Series B, and its floating-rate asset-backed securities:\n\n\nPreferred Stock\n\n\nSallie Mae today announced the dividends on its Floating-Rate Non-Cumulative Preferred Stock, Series B (“Preferred Stock”), when, as and if declared by its Board of Directors, will transition from using three-month USD LIBOR as an index to three-month CME Term SOFR plus a tenor spread adjustment of 0.26161% (the “Three-Month Index Replacement Rate”) by operation of law pursuant to the terms, and the safe harbor provisions, of the Adjustable Interest Rate (LIBOR) Act (“LIBOR Act”).\n\n\nThe replacement of three-month USD LIBOR with the Three-Month Index Replacement Rate will be effective for dividends to be based on indices available after June 30, 2023 (the “Cessation Date”), when three-month USD LIBOR is expected to either cease being published or no longer be representative.\n\n\nBecause quarterly dividends on Sallie Mae’s Preferred Stock, when, as and if declared by its Board of Directors, are based on indices available approximately three months prior to the relevant payment date, any declared dividend to be paid on September 15, 2023 would still be based on three-month USD LIBOR. Accordingly, the first dividend on Sallie Mae’s Preferred Stock (when, as and if declared by its Board of Directors) that would be based on the Three-Month Index Replacement Rate would be any declared dividend to be paid on December 15, 2023.\n\n\nAdditional information regarding Sallie Mae’s Preferred Stock will be available by accessing the Depository Trust & Clearing Corporation’s Legal Notice System (LENS).\n\n\nAsset-Backed Securities\n\n\nSallie Mae Bank, as servicer, administrator, and calculation agent for the Sallie Mae Private Education Loan Trusts, today announced the floating-rate asset-backed securities identified below (“Notes”) will transition from using one-month USD LIBOR as an index to one-month CME Term SOFR plus a tenor spread adjustment of 0.11448% (the “One-Month Index Replacement Rate”) (i) by operation of law, pursuant to the LIBOR Act, or (ii) pursuant to the terms of such Notes.\n\n\nThe replacement of one-month USD LIBOR with the One-Month Index Replacement Rate ...