Sallie Mae Closes First Asset-Backed Securitization - Quick Facts

(RTTNews) - Sallie Mae, formally known as SLM Corp. (SLM) announced the completion of the company's first asset-backed securitization as a standalone consumer banking business and the definitive agreement for its first loan sale.

The company noted that the off-balance sheet securitization consisted of approximately $380 million of Smart Option Student Loans. All securities, including the entire residual interest in the loans, were privately placed with a single, third-party investment manager.

The company said that it has also signed a definitive agreement to sell approximately $820 million of Smart Option Student Loans to Navient Corporation. The loan sale is expected to close in August.

On April 30, 2014, Sallie Mae completed the strategic spin off of its portfolio management, loan servicing and asset recovery businesses. Today, the company focuses exclusively on products and services that help families save, plan and pay responsibly for college. Previously, Sallie Mae stated its intent to sell a portion of the loans it originates as part of its new business model.