Sallie Mae 2005 Annual Report Download - page 158

SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)
F-36
8. Long-Term Borrowings (Continued)
obligations on fixed or variable rate borrowings (see Note 10, “Derivative Financial Instruments”).
Payments and receipts on the Company’s interest rate and foreign currency swaps are not reflected in the
tables above. The Company swaps all foreign currency denominated debt to U.S dollars.
At December 31, 2005, the Company had outstanding long-term borrowings with call features totaling
$9.6 billion, and had $7.2 billion of outstanding long-term borrowings that are putable by the investor to
the Company prior to the stated maturity date. Generally, these instruments are callable and putable at the
par amount. As of December 31, 2005, the stated maturities (for putable debt, the stated maturity date is
the put date) and maturities if accelerated to the call dates for long-term borrowings are shown in the
following table:
December 31, 2005
Year of Maturity
Stated
Maturity(1) Maturity to
Call Date(1)
2006.............................................................. $ 3,388,254 $ 5,260,193
2007.............................................................. 13,960,174 13,019,901
2008.............................................................. 12,480,469 13,035,713
2009.............................................................. 8,888,804 9,351,059
2010.............................................................. 7,462,229 7,542,513
2011.............................................................. 3,740,024 3,746,493
2012-2047......................................................... 38,631,458 36,595,540
88,551,412 88,551,412
SFAS No.133 gains (losses) on derivativehedging activities ............. (432,322) (432,322)
$ 88,119,090 $ 88,119,090
(1) The Company views its on-balance sheet securitization trust debt as long-term and projects its maturities based
on the Company’s current estimates regarding loan prepayment speeds. The projected principal paydowns of $3.4
billion shown in year 2006 relate to the on-balance sheet securitization trust debt.
In May 2003, the Company completed a private offering of $2 billion aggregate principal amount of
32-year unsecured senior convertible debentures that are convertible, under certain conditions, into shares
of SLM common stock, at an initial conversion price of $65.98. The investors generally can only convert
the debentures if the Company’s stock price has appreciated to 130 percent of the conversion price
($85.77) for a prescribed period, or the Company calls the debentures. The convertible debentures bear
interest at a floating rate equal to three-month LIBOR minus .05 percent, until July 25, 2007, after which,
the debentures can pay additional contingent interest under certain circumstances. Beginning on July 25,
2007, the Company may call the debentures and the investors may put the debentures, subject to certain
conditions.