Sallie Mae 2011 Annual Report Download - page 160

SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
6. Borrowings (Continued)
(ii) the residual cash flow derived from the assets securing the loan. In addition, the remaining balance is due on
December 31, 2015. Residual cash flow in excess of that needed to make quarterly principal payments is
restricted but we are permitted, at our option, to prepay the obligation, in whole or in part, at any time without
penalty.
Securitizations
The following table summarizes the securitization transactions issued in 2010 and 2011.
(Dollars in millions) AAA-rated bonds
Issue Date Issued
Total
Issued Cost of Funds
Weighted
Average
Life
FFELP:
2010-1 ..................................... April 2010 $1,222 1 month LIBOR plus 0.46% 3.3 years
2010-2 ..................................... August 2010 760 1 month LIBOR plus 0.56% 4.3 years
Total bonds issued in 2010 ................... $1,982
Total loan amount securitized in 2010 .......... $1,965
2011-1 ..................................... March 2011 $ 812 1 month LIBOR plus 0.89% 5.5 years
2011-2 ..................................... May2011 821 1 month LIBOR plus 0.94% 5.5 years
2011-3 ..................................... November 2011 812(1) 1 month LIBOR plus 1.28% 7.8 years
Total bonds issued in 2011 ................... $2,445
Total loan amount securitized in 2011 .......... $2,344
Private Education:
2010-A March 2010 1,550 1 month LIBOR plus 3.29%(2) 4.1 years
2010-B .................................... July 2010 869 1 month LIBOR plus 1.98% 0.9 years
2010-C .................................... July 2010 1,701 1 month LIBOR plus 2.33% 1.8 years
Total bonds issued in 2010 ................... $4,120
Total loan amount securitized in 2010 .......... $6,186
2011-A .................................... April 2011 $ 562 1 month LIBOR plus 1.99% 3.8 years
2011-B .................................... June 2011 825 1 month LIBOR plus 1.89% 4.0 years
2011-C .................................... November 2011 721 1 month LIBOR plus 2.99% 3.4 years
Total bonds issued in 2011 ................... $2,108
Total loan amount securitized in 2011 .......... $2,674
(1) Total size excludes subordinated tranche that was retained at issuance totaling $24 million.
(2) Cost of funds expressed on a LIBOR-equivalent basis assuming a Prime/LIBOR spread of 2.75 percent on the $149 million of Prime-
indexed bonds.
2012 Transactions
On January 19, 2012, we issued a $765 million FFELP ABS transaction. The AAA bonds were priced at
one-month LIBOR plus 0.96 percent with a weighted average life of 4.6 years.
On February 9, 2012, we issued $547 million of Private Education Loan ABS. The AAA bonds were priced
at one-month LIBOR plus 2.32 percent with a weighted average life of 3 years.
Auction Rate Securities
At December 31, 2011, we had $3.9 billion of auction rate securities outstanding in securitizations. Since
February 2008, problems in the auction rate securities market as a whole led to failures of the auctions pursuant
to which certain of our auction rate securities’ interest rates are set. As a result, $3.3 billion of our auction rate
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