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Bonds and Notes Payable
3 Months Ended
Mar. 31, 2015
Debt Disclosure [Abstract]  
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.