First Marblehead (FMD) said it expects to get $89 million in upfront structural advisory fees on a loan securitization.
The Boston-based student lender said the fees are to be paid in connection with the proposed securitization of private student loans to be purchased by the National Collegiate Student Loan Trust 2006-4. The payout amounts to 12.3% of the private student loan balance securitized.
The Trust expects to issue $1.025 billion in principal amount of asset-backed securities and plans to acquire private student loans with a principal and accrued interest balance of $725 million, in a transaction that is scheduled to close on or about Dec. 7.
First Marblehead expects to be in a position to estimate the discounted present value of its additional structural advisory fees and residual revenue related to this transaction at approximately the time of closing.
The loans to be securitized in this transaction were originated by several different banks under various loan programs that were structured with the assistance of First Marblehead. The Trust expects that approximately 93% of the loans to be purchased at closing will be "Direct to Consumer" loans and that the remaining 7% of the loans to be purchased at closing will be "School Channel" loans.
Shares slipped $1.50 Monday to $75.85.