Sallie Mae 2005 Annual Report Download - page 155

SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)
F-33
7. Short-Term Borrowings
Short-term borrowings have a remaining term to maturity of one year or less. The following tables
summarize outstanding short-term borrowings at December 31, 2005 and 2004, the weighted average
stated interest rates at the end of each period, and the related average balances and weighted average
stated interest rates during the periods.
December 31, 2005
Year ended
December 31, 2005
Ending
Balance
Weighted
Average
Interest
Rate
Average
Balance
Weighted
Average
Interest
Rate
Short-termdeposits................................. $ 1,000 4.66% $ 8 4.36%
Floating ratenotes ................................. 3,367 4.16 161,549 2.80
Commercial paper.................................. — — 345,236 3.10
Short-term portionof long-term borrowings........... 3,805,288 4.36 4,010,259 3.49
Total short-term borrowings ......................... $ 3,809,655 4.36% $ 4,517,052 3.43%
Maximum outstanding at any month end.............. $ 5,516,177
December 31, 2004
Year ended
December 31, 2004
Ending
Balance
Weighted
Average
Interest
Rate
Average
Balance
Weighted
Average
Interest
Rate
Six month floating rate notes ........................ $ — —% $ 1,585,830 1.18%
Other floating rate notes............................ 29,256 4.96 373,888 1.22
Discount notes..................................... — — 1,687,391 .96
Commercial paper.................................. — — 125,224 1.86
Short-term portionof long-term borrowings........... 2,177,839 2.83 6,824,097 3.18
Total short-term borrowings ......................... $ 2,207,095 2.86% $10,596,430 2.44%
Maximum outstanding at any month end.............. $20,177,348
To match the interest rate characteristics of short-term notes with the interest rate characteristics of
certain assets, the Company enters into interest rate swaps with independent parties. Under these
agreements, the Company makes periodic payments, generally indexed to the related asset rates, or rates
which are highly correlated to the asset rates, in exchange for periodic payments, which generally match
the Company’s interest obligations on fixed or variable rate notes (see Note 10, “Derivative Financial
Instruments”). Payments and receipts on the Company’s interest rate swaps are not reflected in the above
tables.
As of December 31, 2005, the Company has $5.5 billion in revolving credit facilities which provide
liquidity support for general corporate purposes including backup for its commercial paper program. The
Company has never drawn on these facilities. The facilities include a $1.0 billion 5-year revolving credit
facility maturing in October 2007, a $1.0 billion 5-year revolving credit facility maturing in October 2008, a
$1.5 billion 5-year revolving credit facility maturing in October 2009, and a $2.0 billion 5-year revolving
credit facility maturing in 2010. Interest on these facilities is based on LIBOR plus a spread that is
determined by the amount of the facility utilized and the Company’s credit rating.