Sallie Mae 2011 Annual Report Download - page 162
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SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
6. Borrowings (Continued)
as the Bank is generally in sound financial condition. Borrowing capacity is limited by the availability of
acceptable collateral. As of December 31, 2011, borrowing capacity was approximately $793 million and there
were no outstanding borrowings.
Senior Unsecured Debt
In 2010, we issued $1.5 billion of senior unsecured notes that bear a coupon of 8.00 percent. The notes were
swapped to LIBOR with an all-in cost of LIBOR plus 4.65 percent.
On January 14, 2011, we issued a $2 billion five-year 6.25 percent fixed rate unsecured bond. The bond was
issued to yield 6.50 percent before underwriting fees. The rate on the bond was swapped from a fixed rate to a
floating rate equal to an all-in cost of one-month LIBOR plus 4.46 percent. The proceeds of this bond were
designated for general corporate purposes.
On January 27, 2012, we issued a two-part, $1.5 billion deal featuring five-year and 10-year unsecured
bonds. The 6.00 percent fixed rate five-year bond was issued for $750 million to yield 6.25 percent before
underwriting fees. The rate on the bond was swapped from a fixed rate to a floating rate equal to an all-in cost of
one-month LIBOR plus 5.2 percent. The 7.25 percent fixed rate 10-year bond was issued for $750 million to
yield 7.50 percent before underwriting fees. The rate on the bond was swapped from a fixed rate to a floating rate
equal to an all-in cost of one-month LIBOR plus 5.4 percent. The proceeds of these bonds were designated for
general corporate purposes.
The following table summarizes activity related to the senior unsecured debt repurchases. “Gains on debt
repurchases” is shown net of hedging-related gains and losses.
Years Ended December 31,
(Dollars in millions) 2011 2010 2009
Unsecured debt principal repurchased ............................ $894 $4,868 $3,447
Gains on debt repurchases ...................................... 38 317 536
Unsecured Revolving Credit Facility
In 2010, we terminated our $1.6 billion revolving credit facility that was scheduled to mature in October 2011.
F-53