Bonds and Notes Payable |
Bonds and Notes Payable
The following tables summarize the Company’s outstanding debt obligations by type of instrument: | | | | | | | | | | As of March 31, 2015 | | Carrying amount | | Interest rate range | | Final maturity | Variable-rate bonds and notes issued in asset-backed securitizations: | | | | | | Bonds and notes based on indices | $ | 25,850,638 |
| | 0.16% - 6.90% | | 8/26/19 - 8/26/52 | Bonds and notes based on auction | 1,197,065 |
| | 0.64% - 2.16% | | 3/22/32 - 11/26/46 | Total variable-rate bonds and notes | 27,047,703 |
| | | | | FFELP warehouse facilities | 1,010,258 |
| | 0.17% - 0.29% | | 1/17/16 - 12/17/17 | Unsecured line of credit | — |
| | — | | 6/30/19 | Unsecured debt - Junior Subordinated Hybrid Securities | 59,837 |
| | 3.65% | | 9/15/61 | Other borrowings | 82,305 |
| | 1.68% - 5.10% | | 11/11/15 - 12/31/18 | | 28,200,103 |
| | | | | Discount on bonds and notes payable | (384,779 | ) | | | | | Total | $ | 27,815,324 |
| | | | |
| | | | | | | | | | As of December 31, 2014 | | Carrying amount | | Interest rate range | | Final maturity | Variable-rate bonds and notes issued in asset-backed securitizations: | | | | | | Bonds and notes based on indices | $ | 25,713,431 |
| | 0.19% - 6.90% | | 5/25/18 - 8/26/52 | Bonds and notes based on auction | 1,311,669 |
| | 0.47% - 2.17% | | 3/22/32 - 11/26/46 | Total variable-rate bonds and notes | 27,025,100 |
| | | | | FFELP warehouse facilities | 1,241,665 |
| | 0.16% - 0.26% | | 1/17/16 - 6/11/17 | Unsecured line of credit | — |
| | — | | 6/30/19 | Unsecured debt - Junior Subordinated Hybrid Securities | 71,688 |
| | 3.63% | | 9/15/61 | Other borrowings | 81,969 |
| | 1.67% - 5.10% | | 11/11/15 - 12/31/18 | | 28,420,422 |
| | | | | Discount on bonds and notes payable | (393,072 | ) | | | | | Total | $ | 28,027,350 |
| | | | |
FFELP Warehouse Facilities
The Company funds a portion of its FFELP loan acquisitions using its FFELP warehouse facilities. Student loan warehousing allows the Company to buy and manage student loans prior to transferring them into more permanent financing arrangements.
As of March 31, 2015, the Company had three FFELP warehouse facilities as summarized below. | | | | | | | | | | | | | | | | | NHELP-III (a) | | NFSLW-I (b) | | NHELP-II | | Total | Maximum financing amount | | $ | 750,000 |
| | 750,000 |
| | 500,000 |
| | 2,000,000 |
| Amount outstanding | | 537,005 |
| | 404,020 |
| | 69,233 |
| | 1,010,258 |
| Amount available | | $ | 212,995 |
| | 345,980 |
| | 430,767 |
| | 989,742 |
| Expiration of liquidity provisions | | May 5, 2015 |
| | June 11, 2015 |
| | December 17, 2015 |
| | | Final maturity date | | January 17, 2016 |
| | June 11, 2017 |
| | December 17, 2017 |
| | | Maximum advance rates | | 92.2 - 95.0% |
| | 92.0 - 98.0% |
| | 91.0 - 97.0% |
| | | Minimum advance rates | | 92.2 - 95.0% |
| | 84.0 - 90.0% |
| | 91.0 - 97.0% |
| | | Advanced as equity support | | $ | 32,515 |
| | 19,001 |
| | 3,640 |
| | 55,156 |
|
| | (a) | On April 30, 2015, the Company amended the agreement for this warehouse facility to change the expiration date for the liquidity provisions to April 29, 2016, and to change the final maturity date to April 29, 2018. |
| | (b) | On January 27, 2015, the Company amended the agreement for this warehouse facility to temporarily increase the maximum financing amount to $1.2 billion. On March 26, 2015, the Company reduced the maximum financing amount from $1.2 billion to $750 million. |
Asset-backed Securitizations
The following table summarizes the asset-backed securitization transactions completed during the three months ended March 31, 2015. | | | | | | | | | | | | | | | | | | | | | 2015-1 | | 2015-2 | | Total | | | | | Class A-1 notes | | Class A-2 notes | | 2015-2 total | | | Date securities issued | | 2/27/15 | | 3/26/15 | | 3/26/15 | | 3/26/15 | | | Total original principal amount | | $ | 566,346 |
| | 122,500 |
| | 584,500 |
| | 722,000 |
| | $ | 1,288,346 |
| | | | | | | | | | | | Class A senior notes: | | | | | | | | | | | Total original principal amount | | $ | 553,232 |
| | 122,500 |
| | 584,500 |
| | 707,000 |
| | 1,260,232 |
| Bond discount | | — |
| | — |
| | — |
| | — |
| | — |
| Issue price | | $ | 553,232 |
| | 122,500 |
| | 584,500 |
| | 707,000 |
| | 1,260,232 |
| Cost of funds (1-month LIBOR plus:) | | 0.59 | % | | 0.27 | % | | 0.60 | % | | | | | Final maturity date | | 4/25/41 |
| | 3/25/20 |
| | 9/25/42 |
| | | | | | | | | | | | | | | | Class B subordinated notes: | | | | | | | | | | | Total original principal amount | | $ | 13,114 |
| | | | | | 15,000 |
| | 28,114 |
| Bond discount | | (1,157 | ) | | | | | | (1,793 | ) | | (2,950 | ) | Issue price | | $ | 11,957 |
| |
| | | | 13,207 |
| | 25,164 |
| Cost of funds (1-month LIBOR plus:) | | 1.50 | % | | | | | | 1.50 | % | | | Final maturity date | | 6/25/46 |
| | | | | | 5/25/49 |
| | |
Unsecured Line of Credit
The Company has a $350.0 million line of credit that has a maturity date of June 30, 2019. As of March 31, 2015, the $350.0 million unsecured line of credit had no amount outstanding and $350.0 million was available for future use.
Debt Repurchases
During the three months ended March 31, 2015 and 2014, the Company repurchased $11.9 million (par value) of its Junior Subordinated Hybrid Securities unsecured debt and $1.4 million (par value) of its own asset-backed debt securities and recognized gains on such purchases of $2.5 million and approximately $39,000, respectively. |