Navient Corporation · NASDAQ:NAVI
Navient — Bank of America Merrill Lynch 2015 Leveraged Finance Conference
22 slides from Navient's conference presentation, Dec 2, 2015
Slide 1: Bank of America Merrill Lynch 2015 Leveraged Finance Conference
Exhibit 99.1 Exhibit Bank December of99.1 America 3, 2015Merrill Lynch 2015 Leveraged Finance Conference
Slide 2: Forward-Looking Statements
Forward-Looking Measures December capitalized the forward-looking looking financing adverse inherent terms in cybersecurity effects FFELP traded families; creditworthiness changes The assumptions not Navient consumer initiated because may discussion Confidential its date undertake following preparat
Slide 3: Key Highlights
We of Asset Key FFELP Highlights Private Department Education Government $98 $27 $26 Confidential As are Billion Businesses September Management Servicing Recovery the Education Loanloans leading FFELP Private of of receivables and Portfolio Receivables Education proprietary 30, Loan loan Education
Slide 4: Conservative Funding Model
Employ Total $131 ($’s Other, Senior Debt, Facilities, Private— FFELP—Facilities, Private FFELP Asset $15.8 -Manage 1 Confidential $126 Issued Facilities Provides Repurchased Significant Year inbillion “Core $15.8 backed billion $0.9 billions) to billion Unsecured ABS, $2.8 $1.4 a$15.8 date Conserva
Slide 5: Unsecured Debt Maturities
Unsecured As 2015 $0.0 $0.6 $0.8 $1.2 $1.8 $2.1 $2.5 $2.8 $4.2 Important Manage -Reduced Confidential 1.25x Since of 2016 September 2006 astangible total of to2017 Debt maintain and September Navient unsecured Maturities 2018 net proprietary 30, asset 2015 has our 2019 30, maturities repurchased cre
Slide 6: Projected Cash Flows Value
Value Projected $’s FFELP Floor Private Residual Secured Servicing Unencumbered Total Combined before These Enhancing Reduced Acquired -$33 $5.2 1 Confidential Includes $4 Asinbillion billion of FFELP Secured Private Income Billions Rooted projections Unsecured Credit Cash September unsecured (inclu
Slide 7: Private Education Loan Overcollateralization
Opportunity Overcollateralization Private 53% 60% 70% 50% 49% 51% 45% 40% 41% 30% 31% 26% 21% 23% 20% 18% 19% 10-A 0% 10% 13% * Raised -Overview Navient With (average Current* Confidential All As in of 55% 45% 44% 36% 26% 25% 21% 15% current* 11-A approximately Education cost November currently of A
Slide 8: FFELP ABS Update
Update -Navient Launched Exercised Amended 1 Confidential Navient Fitch As ofannounced on October issubmitted 33 process cleanup working FFELP and trusts 31, proprietary ABS to acall to with 2015 comment formal extend include option Environment theresponse the rating information 10% on deadline Lega
Slide 9: Strong Performance Private Education Loan Portfolio
Strong Performance Private 11% 100% 70% 66% 40% Dec 0% Rate 17.3% 20% 21.3% -25% 10% 9.4% Charge 6.7% 5.4% 5% 2.9% 4.3% 2.6% 2.8% 2.3% 1.0% Low 1 partially Confidential 11.1% In6.3% the 08 11% 15% 60% 68% 7.7% Risk 4.6% 5.6% 3.9% 2.7% 1.8% 2.1% Private Education Dec 6.8% second 10.4% charged-off 3.6
Slide 10: Platform Scale, Largest Federal Servicer
Platform $250 $275 $300 2011 $150 $175 1 Scale, Largest Successfully We Federal Confidential Aspromote of 2012 billions Performance September servicer Loans loans Delivers 2013 awareness and transferred $225 serviced Serviced of 2014 proprietary Superior 30, federal in and $Q3 2015 by of ’s by Compl
Slide 11: Asset Recovery Business
Top Non millions $60 $70 $80 $90 in $ ’s YTD $0 $10 $20 1 Key -Strong Total Diverse Focused Confidential 30 Large Compliance Industry As $40 Performing Characteristics Federal of Asset contingent asbusiness September sophisticated portfolio of $50 onleading 9/30/14 Recovery growing Student and focus
Slide 12: Summary
Significant Summary Ability Efficient Growing Confidential toand non-student service and and large-scale, predictable proprietary unsecured loancustomer-focused related cash debt information flow and fee generation support businesses © operating 2015 ABSNavient investors platforms Solutions, through
Slide 13: Appendix
Confidential and proprietary information © 2015 Navient Solutions, Inc. All rights reserved. 13 Appendix
Slide 14: Conservative Balance Sheet Management
Conservative Years $48.7 $51.7 $60 $70 $50 $40 2006 $0 $10 $20 $24.0 $28.0 $30.2 $21.8 $20.1 $17.0 2009 $15.8 1.00 1.05 1.10 1.15 1.20 1.25 1.30 1.35 December Total Unsecured * Tangible Confidential Quarter $45.1 $38.0 2007 2010 Managed Ending $47.2 $22.4 $22.1 $19.8 $17.8 Equity Net net ending $39.
Slide 15: High Quality Education Loan Portfolio Statistics
High 97-98% 78% Fully Largest Seasoned Typically Total FFELP Note: Private Balance Avg. % 90+ Confidential Consolidation Stafford Cosigner Day of Loan FICO Quality Education integrated Financial Education 78% Portfolio portfolio holder of ($bn, Delinquent non-dischargeable portfolio Size portfolio &
Slide 16: Private Education Loans Status, September 30, 2015
September Non-Traditional Monthly Loan Not Loans Total Charge-offs Confidential Yet Loans Seasoning Status ininScheduled Forbearance Repayment- Repayment 30, in as 0-12 and Repayment 2015 a –Portfolio % proprietary payments “Core of Payments Traditional Current Delinq 324 55 379 loans 2,128 207 2,33
Slide 17: Private Education Loans Status, September 30, 2014
September Non-Traditional Monthly Loan Not Loans Total Charge-offs Confidential Yet Loans Seasoning Status ininScheduled Forbearance Repayment- Repayment 30, in as 0-12 and Repayment 2014 a –Portfolio % proprietary payments “Core of Payments Traditional Current Delinq 466 76 542 loans 3,128 308 3,43
Slide 18: FFELP Projected Cash Flows
FFELP $’s as 2023 Projected Total No Assumptions These Confidential ofin Floor 9/30/15 2024 Cash millions projections Cash Income, Total FFELP Excess Servicing 2025 Flows and Flows Q4Revenue 2026 proprietary 2015 Spread Average from are CPR/CDR Highly Revenue based 2027 2016 Projected $339 $609 $215
Slide 19: Estimated Student Loan Market Distribution
StudentStudent Estimated Federal FFELP Source: Private Confidential Loans, Owned Loans Navient Loan Outstanding and Market FFELP $62 $157 by Loan estimates proprietary Navient, Performance owned Student for $30 information by total Loan owned Report, outstanding Market by ©Q3 ED, 2015 Distribution 2
Slide 20: Complexity of Repayment Options in 1990 vs Today
In 1990 Discretionary Forbearance Hardship Deferment 1990 School Graduate Unemployment Rehabilitation Teacher Internship/Residency Temporary Armed National Peace Parental Mother Repayment Standard Confidential Corps, Forces Full-Time Half-Time Entering/Re-entering Student Shortage Leave Oceanic Grad
Slide 21: Repayment, Deferment and Forbearance Options
By Discretionary Forbearance Hardship Medical Department Active Student Mandatory Local Designated Death Forgiveness Loan Civil Income Public Effective (1) (2) (3) (4) (5) (6) Deferment School Post Graduate Unemployment Economic Rehabilitation Military Post-Active Teacher Internship/Residency Tempor
Slide 22: Navient
NAVI=NT.
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