Sallie Mae 2009 Annual Report Download - page 178

7. Borrowings (Continued)
primary beneficiary of and currently consolidates the following financing VIEs as of December 31, 2009 and
2008:
Short
Term
Long
Term Total Loans Cash Other Assets Total
Debt Outstanding Carrying Amount of Assets Securing Debt
Outstanding
December 31, 2009
(Dollars in millions)
Secured Borrowings:
ED Participation Program facility . . . ............. $9,006 $ — $ 9,006 $ 9,397 $ 115 $ 61 $ 9,573
ED Conduit Program facility . .................. 14,314 — 14,314 14,594 478 372 15,444
2008 Asset-Backed Financing Facilities ............ — 8,801 8,801 9,929 204 100 10,233
On-balance sheet securitizations ................. — 89,200 89,200 93,020 3,627 3,084 99,731
Indentured trusts .......................... 64 1,533 1,597 2,225 172 24 2,421
23,384 99,534 122,918 129,165 4,596 3,641 137,402
ASC 815 fair value adjustment ................. — 1,479 1,479 — — — —
Total . ................................ $23,384 $101,013 $124,397 $129,165 $4,596 $3,641 $137,402
Short
Term
Long
Term Total Loans Cash Other Assets Total
Debt Outstanding Carrying Amount of Assets Securing Debt
Outstanding
December 31, 2008
(Dollars in millions)
Secured Borrowings:
ED Participation Program . . ................... $7,365 $ — $ 7,365 $ 7,733 $ 88 $ 85 $ 7,906
2008 Asset-Backed Financing Facilities ............. 24,768 — 24,768 31,953 462 816 33,231
On-balance sheet securitizations . . . .............. — 80,601 80,601 81,547 2,632 2,521 86,700
Indentured trusts . . . ........................ 31 1,972 2,003 2,199 236 40 2,475
32,164 82,573 114,737 123,432 3,418 3,462 130,312
ASC 815 fair value adjustment .................. — 872 872 — — — —
Total . ................................. $32,164 $83,445 $115,609 $123,432 $3,418 $3,462 $130,312
Asset-Backed Financing Facilities
During the first quarter of 2008, the Company entered into three new asset-backed financing facilities
(the “2008 Asset-Backed Financing Facilities”): (i) a $26.0 billion FFELP loan ABCP conduit facility (the
“2008 FFELP ABCP Facility”); (ii) a $5.9 billion Private Education Loan ABCP conduit facility (the “2008
Private Education Loan ABCP Facility”) (collectively, the “2008 ABCP Facilities”); and (iii) a $2.0 billion
secured FFELP loan facility (the “2008 Asset-Backed Loan Facility”). The initial term of the 2008 Asset-
Backed Financing Facilities was 364 days. The underlying cost of borrowing under the 2008 ABCP Facilities
was approximately LIBOR plus 0.68 percent for the FFELP loan facilities and LIBOR plus 1.55 percent for
the Private Education Loan facility, excluding upfront and unused commitment fees. All-in pricing on the
2008 ABCP Facilities varied based on usage. For the full year 2008, the combined, all-in cost of borrowings
related to the 2008 Asset-Backed Financing Facilities, including amortized upfront fees and unused commit-
ment fees, was three-month LIBOR plus 2.47 percent. The primary use of the 2008 Asset-Backed Financing
Facilities was to refinance comparable ABCP facilities incurred in connection with the Proposed Merger, with
the expectation that outstanding balances under the 2008 Asset-Backed Financing Facilities would be reduced
through securitization of the underlying student loan collateral in the term ABS market.
On February 2, 2009, the Company extended the maturity date of the 2008 ABCP Facilities from
February 28, 2009 to April 28, 2009 for a $61 million upfront fee. The other terms of the facilities remained
materially unchanged.
F-51
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)