With the ouster of a boss by a group of new bosses and government investigations, the recent history of student loan issuer SLM Corp. or Sallie Mae is the finance world’s answer to “The Sopranos.” Unlike the popular cable television show, though, Sallie Mae’s story is far from over.
Sallie Mae will find itself in junk territory should its planned buyout be approved. The student loan lender plans to bring as much as $16.5 billion to the leveraged finance markets before the end of the year, according to Fitch Ratings’ forward high yield and leveraged loan calendars – $12.5 billion in term loans and $4 billion in high yield bonds. Banc of America Securities and JPMorgan are the underwriters on the deal, which they are also a part of.
