Sallie Mae 2006 Annual Report Download - page 154

7. Short-Term Borrowings (Continued)
rates at the end of each period, and the related average balances and weighted average interest rates during the
periods.
Ending
Balance
Weighted
Average
Interest
Rate
Average
Balance
Weighted
Average
Interest
Rate
December 31, 2006
Year Ended
December 31, 2006
Short-term deposits ....................... $ — —% $ 992 4.68%
Floating rate notes ........................ 248,735 5.17 174,606 5.03
Commercial paper ........................ — — 81,678 4.44
Short-term portion of long-term borrowings ..... 3,279,528 5.51 3,644,479 4.75
Total short-term borrowings ................. $3,528,263 5.48% $3,901,755 4.75%
Maximum outstanding at any month end ....... $4,819,009
Ending
Balance
Weighted
Average
Interest
Rate
Average
Balance
Weighted
Average
Interest
Rate
December 31, 2005
Year Ended
December 31, 2005
Short-term deposits ....................... $ 1,000 4.66% $ 8 4.36%
Floating rate notes ........................ 3,367 4.16 161,549 2.80
Commercial paper ........................ — — 345,236 3.10
Short-term portion of 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
To match the interest rate and currency characteristics of its borrowings with the interest rate and
currency characteristics of its assets, the Company enters into interest rate and foreign currency 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 and currency swaps
are not reflected in the above tables.
As of December 31, 2006, the Company has $6.5 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 2008, a $1.5 billion 5-year revolving credit facility maturing in October 2009, a
$2.0 billion 5-year revolving credit facility maturing in October 2010, and a $2.0 billion 5-year revolving
credit facility maturing in October 2011. 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.
F-35
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)