You are not logged in!
Do you want to login? It's free!
Who do you implu? Create a Free Account!
On January 14, 2011, SLM Corporation (the "Company") and the related parties to the Company's asset-backed commercial paper ("ABCP") facility entered into an amendment to the existing agreement expanding the size and extending the multi-year ABCP facilities (the "Facility") which will continue to provide funding for the Company's federally-guaranteed student loans. The Facility amount is $7.5 billion reflecting an increase of $2.5 billion over the previously scheduled facility reduction. The scheduled maturity date of the facility is January 10, 2014. The company paid fees of $2 million. The usage fee for the Facility remains unchanged at 0.50 percent over the applicable funding rate. The amended facility features two contractual reductions over the term. The first reduction is on January 13, 2012, to $5.0 billion. The second reduction is on January 11, 2013, to $2.5 billion. If the company fails to reduce the facility at either trigger point, the usage fee increases to a maximum of 2.00% over the applicable funding rate. If liquidity agreements are not renewed on the trigger dates the usage fee increases to 1.00 percent over the applicable funding rate on January 13, 2012 and 1.50 percent over the applicable funding rate on January 11, 2013.