Skip to: Content
Skip to: Site Navigation
Skip to: Search

December 2, 2008 12:17:49 PM CST

Learn about Newser Points »

« Back to the grid | Next story »

Student Lender Sallie Mae Plans $2.5B Stock Sale

Posted Dec 27, 07 7:37 AM CST in Business 

(Newser) – With a credit rating bordering on junk-bond status, embattled student loan provider Sallie Mae plans a public stock offering to raise $2.5 billion, reports the Wall Street Journal. The company will use $2 billion to buy back its own stock futures, which have lost value recently following a failed attempt to take the company private.

Investors, who originally anticipated Sallie Mae to spend between $1 billion and $1.6 billion on the purchases, were disappointed in the news and in after-market trading Sallie Mae shares lost $1.44, or 6.5%. Earlier this year, shares traded as high as $58. Current investors worry the sale of common and preferred stock will further dilute their current holdings value.

Source Wall Street Journal

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Markets Drop as KKR Unit Delays Payment

    Feb 20, 08 7:21 AM CST
    Markets Drop as KKR Unit Delays Payment Asian stocks slumped today after reports in the Financial Times that a struggling arm of private equity heavyweight Kohlberg Kravis Roberts. missed a second payment on billions of dollars of commercial debt just 6 months after two of its founders poured $270 million into the company. Investors cashed out as fears of a global credit meltdown flared, reports the Wall Street Journal.  More »

  • Sallie Mae Drops $900M Lawsuit

    Jan 29, 08 9:31 AM CST
    Sallie Mae Drops $900M Lawsuit Beleaguered student loan provider Sallie Mae yesterday dropped its $900 million lawsuit against the onetime suitors who bailed on a $25.3 billion buyout after the credit crunch caused would-be investors to walk away, reports the Washington Post. By agreeing not to seek the penalty from investment firm JC Flowers and several partners, Sallie Mae secured $31 billion in financing. More »

  • Sallie Mae Sues Spooked Suitors

    Oct 9, 07 5:45 AM CDT
    Sallie Mae Sues Spooked Suitors College student lender Sallie Mae is suing a group of private equity firms and banks that are backing out of a $25-billion buyout deal. The group—J.C. Flowers & Company, Friedman Fleischer & Lowe, JP Morgan Chase and Bank of America—had set a deadline of today for negotiating new terms, or they'll walk away from the deal, despite a $900-million breakup fee, reports the New York Times. More »

  • $25B Sallie Mae Buyout on the Rocks

    Sep 27, 07 9:52 AM CDT
    $25B Sallie Mae Buyout on the Rocks Sallie Mae doesn’t look like such a bargain at $25 billion anymore, and J.C. Flowers & Co. is trying to renegotiate—or escape—its deal to acquire the student lender, citing the credit market implosion and legislation to reform student loan practices. It’s the kind of deal once considered unbreakable, the Wall Street Journal says, but private equity is in disarray. More »

  • Credit Jitters May Put KKR Offering on Ice

    Aug 23, 07 7:45 AM CDT
    Credit Jitters May Put KKR Offering on Ice The Times of London claims that buyout firm KKR has postponed plans for a $1.25B float and a public listing because of the fallout from turbulent credit markets. The company had planned its IPO this September but has reportedly pulled back due to waning investor confidence following the subprime collapse. KKR, however, claims that the IPO is continuing full steam ahead. More »

A promotional vehicle representing the Sallie Mae Fund is captured in this file photo. (PRNewsFoto/The Sallie Mae Fund)   (Associated Press)
Student loan giants, Sallie Mae plans to offer $2.5 billion through public stock offerings.   (Shutterstock.com)
One analyst voiced a concern that the offering might be the "first of several steps to shore up the balance sheet, which may come at the expense of current shareholders."   (Index Open)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (
1
 of 2)

Tags

subprime mortgages • private equity • Sallie Mae • SLM Corp


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular

Loading...

Other Business Stories

What is Newser?

2008 Codie Finalist

Face it: there's too much news. At Newser a team of editors and writers culls the most important stories from hundreds of U.S. and international sources and reduces them to a headline, picture, and two paragraphs. It's the Newser guarantee: we can take any report or column or video and pack what you need to know into 120 words or less. Newser's short-form aggregation, visual format, and unique information tools help you get more of the kind of news you want, in a quicker and more entertaining way. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »