Sallie Mae 2007 Annual Report Download - page 160

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, 2007 and 2006, the weighted average interest
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, 2007
Year Ended
December 31, 2007
Short-term deposits ..................... $ 254,029 4.77% $ 166,013 4.94%
Interim ABCP Facility ................... 25,960,348 5.32 10,604,570 3.29
Short-term portion of long-term borrowings . . . 8,451,163 4.86 4,975,380 4.86
Other interest bearing liabilities ............ 1,281,867 3.06 638,927 4.85
Total short-term borrowings ............... $35,947,407 5.13% $16,384,890 3.84%
Maximum outstanding at any month end ..... $36,980,307
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%
Commercial paper ........................ — — 81,678 4.44
Short-term portion of long-term borrowings ..... 3,279,528 5.51 3,644,479 4.75
Other interest bearing liabilities .............. 248,735 5.17 174,606 5.03
Total short-term borrowings ................. $3,528,263 5.48% $3,901,755 4.75%
Maximum outstanding at any month end ....... $4,819,009
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.
On April 30, 2007, in connection with the Merger, the Company entered into an aggregate interim
$30 billion asset-backed commercial paper conduit facility (collectively, the “Interim ABCP Facility”). This
facility effectively terminates on April 24, 2008.
As of December 31, 2007, 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
F-39
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share amounts, unless otherwise stated)