The refinancing extends debt maturity with modestly higher interest cost—monitor Q2 2026 earnings for the incremental expense impact. The tender offer's success is tied to this offering; watch for any pricing or market reception shifts affecting completion.
Price Chart
Executive Summary
SLM Corp is offering $500M of 6.495% senior notes due 2032, with proceeds used to fund a concurrent tender offer to retire its existing $500M 3.125% notes due 2026. The refinancing extends debt maturity but increases interest cost by ~3.37% on the refinanced amount. Financial performance remains solid with 2025 revenue up 7.4% YoY and EPS up 29.1%.
Key Facts
- $500,000,000 aggregate principal of 6.495% Fixed-to-Floating Rate Senior Notes due 2032
- Fixed rate of 6.495% through May 15, 2031, then floating at Compounded SOFR + 271 bps
- Net proceeds of ~$493.2 million to fund tender offer for $500M of 3.125% Senior Notes due 2026
- Offering closes on or about May 15, 2026; tender offer contingent on this offering closing
- Notes are unsecured, rank equally with existing unsecured debt; structurally subordinated to subsidiary liabilities
Financial Impact
Interest expense on $500M increases by ~3.37% per year ($16.85M annually) vs. the retired 3.125% notes; no equity dilution
Risk Factors
- Higher interest expense reduces net income by ~$16.85M annually
- Tender offer may not fully retire all 2026 notes if proceeds insufficient
- No active trading market expected for the new notes
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 424B5 Filing (Primary) | 0001193125-26-212403 |
| Document: d138611dexfilingfees.htm | 0001193125-26-212403 |
| Document: 0001193125-26-212403-index-headers.html | 0001193125-26-212403 |
| Document: 0001193125-26-212403-index.html | 0001193125-26-212403 |
| Document: 0001193125-26-212403.txt | 0001193125-26-212403 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
May 15, 2026 23w ago | 8-K | $74.97 $74.85 | ▼ −0.16% | ▼ −4.68% | $71.46 (−4.68%) |
May 7, 2026 24w ago | 424B5 | $74.90 $74.80 | ▼ −0.13% | ▼ −4.97% | $71.46 (−4.59%) |
May 6, 2026 24w ago | 8-K | $74.53 $75.08 | ▲ +0.74% | ▼ −1.32% | $71.46 (−4.12%) |
Apr 27, 2026 26w ago | 8-K | $74.48 $74.10 | ▼ −0.51% | ▼ −4.50% | $71.46 (−4.05%) |
Apr 27, 2026 26w ago | DEFA14A | $74.48 $74.10 | ▼ −0.51% | ▼ −4.50% | $71.46 (−4.05%) |
Apr 23, 2026 26w ago | 8-K | $73.97 $74.25 | ▲ +0.38% | ▼ −4.70% | $71.46 (−3.39%) |
US Market Status
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