Sallie Mae Prices $500 Million Senior Notes Offering
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 07 2026
0mins
Sallie Mae priced its public offering of $500 million aggregate principal amount of 6.495% Fixed-to-Floating Rate Senior Notes due 2032 at par. J.P. Morgan Securities LLC and Barclays Capital Inc. are acting as joint book-running managers. BofA Securities, Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, and RBC Capital Markets, LLC are acting as co-managers. The Senior Notes are expected to be issued on May 15, 2026, subject to customary closing conditions. SLM Corporation intends to use the net proceeds from the offering to fund the purchase of up to $500 million in aggregate principal amount of its 3.125% notes due 2026 accepted for purchase pursuant to the tender offer announced earlier, together with accrued and unpaid interest, and the payment of related fees and expenses. To the extent any net proceeds remain after the consummation of the Tender Offer, SLM Corporation intends to use such net proceeds to repay at their maturity any 2026 Notes that remain outstanding after the Tender Offer.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy SLM?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on SLM
Wall Street analysts forecast SLM stock price to rise
11 Analyst Rating
7 Buy
2 Hold
2 Sell
Moderate Buy
Current: 22.120
Low
23.00
Averages
31.09
High
37.00
Current: 22.120
Low
23.00
Averages
31.09
High
37.00
About SLM
SLM Corporation is a holding company, which operates through various subsidiaries and is a financial brand for higher education. The Company’s primary business is to originate and service loans it makes to students and their families to finance the cost of their education. It also offers a range of deposit products insured by the Federal Deposit Insurance Corporation. Its primary private education loan product is the Smart Option Student Loan, which emphasizes in-school payment features that can produce shorter terms and reduce customers’ total finance charges. The Smart Option Student Loan generally runs for six months after the borrower separates from school but can run for up to 36 months for a small subset of graduate loans. It also offers six loan products for specific graduate programs of study. These include the Sallie Mae Law School Loan, the Sallie Mae MBA Loan, the Sallie Mae Graduate School Loan for Health Professions, the Sallie Mae Medical School Loan, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Sallie Mae CFO to Speak at 2026 Morgan Stanley Conference
- Executive Speaking Engagement: Sallie Mae's Co-President and CFO Pete Graham is scheduled to speak at the 2026 Morgan Stanley US Financials Conference on June 10 at 7:30 a.m. ET, highlighting the company's leadership in education financing.
- Investor Communication Channels: The conference will feature a live audio webcast and replay available at SallieMae.com/investors, enhancing investor engagement and transparency.
- Mission in Education Financing: Sallie Mae is committed to supporting access to education and lifelong learning through private student lending, helping customers achieve success both during and after college.
- Company Background Information: Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States, emphasizing its independence and market positioning.
See More
Sallie Mae's Stock Performance Declines
- Stock Price Decline: Sallie Mae's stock has dropped 20.1% over the past six months, now trading at $21.71 per share, prompting investors to reconsider their holdings in light of this significant decline.
- Lackluster Revenue Growth: With $1.96 billion in revenue over the trailing 12 months, Sallie Mae's performance is stagnant compared to five years ago, indicating a failure to consistently increase demand and reflecting poor business quality.
- Slow EPS Growth: The company's earnings per share (EPS) grew at a compounded annual growth rate of 3.1% over the last five years, which, while better than flat revenue, suggests management's response to weaker demand through cost structure adjustments.
- Cautious Investment Advice: Although Sallie Mae's forward P/E ratio stands at 8.1, making it appear cheap, the shaky fundamentals indicate significant downside risk, leading analysts to recommend focusing on more attractive stock options.
See More
Sallie Mae Completes Cash Tender Offer for Senior Notes
- Tender Offer Results: As of 5 p.m. on May 12, 2026, Sallie Mae received tenders for $448,412,000 of its 3.125% senior notes, representing 89.68% of the total outstanding amount, indicating strong market confidence in the company.
- Purchase Price Set: The purchase price for each validly tendered note is $995.83 per $1,000 principal amount, plus accrued interest from the last payment date to the settlement date, ensuring reasonable returns for investors.
- New Notes Offering Connection: The tender offer is linked to a contemporaneous offering of new debt securities, aimed at repurchasing existing notes through new financing, thereby optimizing the capital structure and reducing financing costs.
- Future Repayment Plans: The company plans to use proceeds from the new notes offering to repay any notes not tendered, ensuring repayment capability at maturity and further enhancing market confidence in its financial stability.
See More
Sallie Mae Announces Cash Tender Offer Pricing
- Tender Offer Details: Sallie Mae has announced a cash tender offer for its outstanding 3.125% senior notes, aiming to purchase up to $500 million in notes, with settlement expected on May 15, 2026, thereby optimizing its capital structure and reducing financing costs.
- Purchase Price Setting: The purchase price for the notes is set at $995.83 each, which is 25 basis points above the current yield of 4.125% U.S. Treasury securities, a strategy designed to attract more investor participation and enhance market confidence.
- Tender Timeline: The tender offer will expire on May 12, 2026, requiring investors to validly tender their notes before this deadline to ensure eligibility for the purchase consideration, thus improving liquidity and capital turnover efficiency.
- New Debt Issuance Connection: This tender offer is linked to a contemporaneous offering of new notes, expected to provide funds for the repurchase, further solidifying the company's financial stability and laying the groundwork for future expansion.
See More
Act Two Investors Acquires Additional SLM Shares Worth $15.84 Million
- Share Acquisition: Act Two Investors acquired an additional 670,063 shares of SLM in Q1 2026, with an estimated transaction value of $15.84 million, reflecting confidence in the education loan market.
- Position Value Increase: The quarter-end value of SLM holdings rose by $14.13 million, indicating the dual impact of trading and price changes, suggesting optimistic expectations for the company's future performance.
- Performance Improvement: In its Q1 report, SLM raised its diluted EPS from $1.40 to $1.54, with private education loan originations increasing by 5%, showcasing strong performance in the education finance sector.
- Buyback Strategy: The company repurchased 12 million shares for $259 million during the quarter, continuing its aggressive capital return strategy, despite facing rising delinquency rates, demonstrating confidence in long-term growth.
See More
Act Two Investors Acquires Additional SLM Shares Worth $15.84 Million
- Share Acquisition: Act Two Investors disclosed the purchase of 670,063 shares of SLM in Q1 2026, valued at approximately $15.84 million, reflecting confidence in SLM's future performance.
- Increased Ownership: This acquisition raised SLM's share to 3.34% of Act Two Investors' reportable AUM, indicating its significance within the investment portfolio.
- Strong Financial Performance: SLM reported a diluted EPS of $1.54 for Q1 2026, a 10% increase year-over-year, and raised its full-year earnings guidance, showcasing robust performance in the education loan market.
- Risks and Opportunities: Although SLM's delinquency rate rose to 3.98%, the company maintained a 5.29% net interest margin, and if it can sustain double-digit loan growth, it may attract more long-term investors' interest.
See More
Sallie Mae CFO to Speak at 2026 Morgan Stanley Conference
- Executive Speaking Engagement: Sallie Mae's Co-President and CFO Pete Graham is scheduled to speak at the 2026 Morgan Stanley US Financials Conference on June 10 at 7:30 a.m. ET, highlighting the company's leadership in education financing.
- Investor Communication Channels: The conference will feature a live audio webcast and replay available at SallieMae.com/investors, enhancing investor engagement and transparency.
- Mission in Education Financing: Sallie Mae is committed to supporting access to education and lifelong learning through private student lending, helping customers achieve success both during and after college.
- Company Background Information: Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States, emphasizing its independence and market positioning.
See More
Sallie Mae's Stock Performance Declines
- Stock Price Decline: Sallie Mae's stock has dropped 20.1% over the past six months, now trading at $21.71 per share, prompting investors to reconsider their holdings in light of this significant decline.
- Lackluster Revenue Growth: With $1.96 billion in revenue over the trailing 12 months, Sallie Mae's performance is stagnant compared to five years ago, indicating a failure to consistently increase demand and reflecting poor business quality.
- Slow EPS Growth: The company's earnings per share (EPS) grew at a compounded annual growth rate of 3.1% over the last five years, which, while better than flat revenue, suggests management's response to weaker demand through cost structure adjustments.
- Cautious Investment Advice: Although Sallie Mae's forward P/E ratio stands at 8.1, making it appear cheap, the shaky fundamentals indicate significant downside risk, leading analysts to recommend focusing on more attractive stock options.
See More
Sallie Mae Completes Cash Tender Offer for Senior Notes
- Tender Offer Results: As of 5 p.m. on May 12, 2026, Sallie Mae received tenders for $448,412,000 of its 3.125% senior notes, representing 89.68% of the total outstanding amount, indicating strong market confidence in the company.
- Purchase Price Set: The purchase price for each validly tendered note is $995.83 per $1,000 principal amount, plus accrued interest from the last payment date to the settlement date, ensuring reasonable returns for investors.
- New Notes Offering Connection: The tender offer is linked to a contemporaneous offering of new debt securities, aimed at repurchasing existing notes through new financing, thereby optimizing the capital structure and reducing financing costs.
- Future Repayment Plans: The company plans to use proceeds from the new notes offering to repay any notes not tendered, ensuring repayment capability at maturity and further enhancing market confidence in its financial stability.
See More
Sallie Mae Announces Cash Tender Offer Pricing
- Tender Offer Details: Sallie Mae has announced a cash tender offer for its outstanding 3.125% senior notes, aiming to purchase up to $500 million in notes, with settlement expected on May 15, 2026, thereby optimizing its capital structure and reducing financing costs.
- Purchase Price Setting: The purchase price for the notes is set at $995.83 each, which is 25 basis points above the current yield of 4.125% U.S. Treasury securities, a strategy designed to attract more investor participation and enhance market confidence.
- Tender Timeline: The tender offer will expire on May 12, 2026, requiring investors to validly tender their notes before this deadline to ensure eligibility for the purchase consideration, thus improving liquidity and capital turnover efficiency.
- New Debt Issuance Connection: This tender offer is linked to a contemporaneous offering of new notes, expected to provide funds for the repurchase, further solidifying the company's financial stability and laying the groundwork for future expansion.
See More
Act Two Investors Acquires Additional SLM Shares Worth $15.84 Million
- Share Acquisition: Act Two Investors acquired an additional 670,063 shares of SLM in Q1 2026, with an estimated transaction value of $15.84 million, reflecting confidence in the education loan market.
- Position Value Increase: The quarter-end value of SLM holdings rose by $14.13 million, indicating the dual impact of trading and price changes, suggesting optimistic expectations for the company's future performance.
- Performance Improvement: In its Q1 report, SLM raised its diluted EPS from $1.40 to $1.54, with private education loan originations increasing by 5%, showcasing strong performance in the education finance sector.
- Buyback Strategy: The company repurchased 12 million shares for $259 million during the quarter, continuing its aggressive capital return strategy, despite facing rising delinquency rates, demonstrating confidence in long-term growth.
See More
Act Two Investors Acquires Additional SLM Shares Worth $15.84 Million
- Share Acquisition: Act Two Investors disclosed the purchase of 670,063 shares of SLM in Q1 2026, valued at approximately $15.84 million, reflecting confidence in SLM's future performance.
- Increased Ownership: This acquisition raised SLM's share to 3.34% of Act Two Investors' reportable AUM, indicating its significance within the investment portfolio.
- Strong Financial Performance: SLM reported a diluted EPS of $1.54 for Q1 2026, a 10% increase year-over-year, and raised its full-year earnings guidance, showcasing robust performance in the education loan market.
- Risks and Opportunities: Although SLM's delinquency rate rose to 3.98%, the company maintained a 5.29% net interest margin, and if it can sustain double-digit loan growth, it may attract more long-term investors' interest.
See More
