Here is their 8-K filed on Thursday, May 14th:
"On May 14, 2009, The Student Loan Corporation (the Company) entered into an
agreement with the Department of Education sponsored conduit, Straight-A
Funding, LLC (the Conduit), whereby the Company may obtain funding for certain
eligible FFEL Program loans. The Company expects that the Conduit will inform
the Company of the amount available for its initial funding on May 19, 2009, and
that its initial funding settlement will occur on May 26, 2009. Thereafter, to
the extent capacity is available through the Conduit, the Company expects to
continue to finance additional, eligible FFEL Program loans with the Conduit in
the ordinary course of business."
The company indicated in their 10-Q filing earlier this month that they had $11 billion eligible for the conduit:
"The Company anticipates having
approximately $11 billion of Stafford/PLUS loans that would be eligible for the
ABCP Conduit through the remainder of 2009. The actual amount funded through
this program will be dependent on market conditions, the total capacity of the
conduit and industry demand for the conduit funding."
Meanwhile, with their Omnibus Credit Agreement with Citibank expiring later this year, Student Loan Corporation described the status of their long-term financing in this way:
"The
Omnibus Credit Agreement expires on December 31, 2009. The Company is
currently negotiating a new agreement with CBNA to replace the existing
agreement. If the agreement is not extended or replaced by that date, the
borrowings outstanding at that date would continue to mature based on their
originally contracted maturities. However, the Company would no
longer have a guaranteed funding source for new borrowings, which could
negatively impact the ability to fund future
disbursements. Borrowings under the Ominbus Credit Agreement account
for 84% of the Company’s aggregate borrowings. Under the current
Omnibus Credit Agreement, the cost of funding is negotiated on a
borrowing-by-borrowing basis. Hence the cost of borrowing is affected
by market conditions and, as such, future borrowing rates may vary and the
Company’s total funding cost can increase as maturing debt is refinanced with
new borrowings. The agreement provides a maximum aggregate credit limit for
combined short- and long-term borrowings of $30.0 billion. Although the Omnibus
Credit Agreement contains no material financial covenants or restrictions, these
may be incorporated into the terms of future borrowings. The Omnibus Credit
Agreement terminates and all outstanding borrowings thereunder become due and
payable if less than 50% of the voting equity interest in the Company is owned
or controlled by CBNA or any of Citigroup’s subsidiaries. This agreement does
not restrict the Company’s right to borrow from other sources."
Also, in terms of Citibank's realignment, the filing indicated that Student Loan Corporation was now a division within Citi Holdings, where Citibank is housing their non-core assets:
In
January 2009, Citigroup announced that it was realigning its structure into two
distinct businesses for management reporting purposes: Citicorp, which will be
comprised of Citigroup’s core businesses, and Citi Holdings, which will be
comprised of non-core businesses. The Company will be included within
Citi Holdings. The Company does not currently expect this
organizational realignment to adversely affect the Company's business or its
operations, but there can be no assurance that future decisions with respect to
the Company as a non-core business will have no impact on the Company or its
relationships and transactions with CBNA or its affiliates.
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