Sallie Mae, formally SLM Corporation (NASDAQ: SLM), today announced an affiliate of its Sallie Mae Bank subsidiary has formed SMB Private Education Loan Trust 2015-A to hold a beneficial interest in approximately $753 million of Sallie Mae Bank-originated, -owned and -serviced Smart Option Student Loans, and to issue $704 million of notes and the Trust's residual interest to qualified institutional buyers. The notes and residual have priced, and the transaction is anticipated to settle on or about April 23, 2015, pending completion of documentation. Sallie Mae Bank will continue to service the loans in the Trust. The transaction will remove the principal balance of loans backing the Trust from Sallie Mae Bank's balance sheet on the settlement date. The company expects to realize a pre-tax gain on sale of approximately $78 million after estimated closing adjustments and transaction costs, a 10.5-percent premium over the loans' book value. Sallie Mae will update its annual guidance and discuss the implications of the transaction for its outlook in its first-quarter 2015 earnings release to be issued April 22, 2015 and on the subsequent conference call with investors on April 23, 2015. Additional information regarding the notes priced in connection with the SMB Private Education Loan Trust 2015-A transaction follows:
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Sallie Mae (NASDAQ: SLM) is the nation's saving, planning, and paying for college company. Whether college is a long way off or just around the corner, Sallie Mae offers products that promote responsible personal finance including private education loans, Upromise rewards, scholarship search, college financial planning tools, insurance, and online retail banking. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.