Navient Separation And Distribution Agreement

Navient will begin on May 1, 2014 with trading on the NASDAQ under the symbol “NAVI.” After the distribution, Navient will be an independent company and Sallie Mae will not retain any stakes. Navient will repay nearly $300 billion in student loans and help 12 million clients successfully obtain their education credits. Navient will continue to give a solid track record: its credit clients in the Confederation have a rate 30% higher than the national average. Navient will also continue to clean up assets for government, academic and professional clients and will manage a portfolio of FFELP and private education credits. Forward-Looking States This press release contains “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements on the expected relocation of Navient, the expected compliance with all separation conditions up to the date of distribution and the evolution of the “ex-distribution” and “if issued” commercial markets. These statements are based on the current expectations of Sallie Mae`s management and are subject to known and unknown risks and uncertainties. There are a number of risks and uncertainties that could cause actual results to differ materially from those contemplated in the forward-looking statements, including, but not limited to, uncertainties related to obtaining government and third-party authorizations, the authorizations and authorizations necessary to meet certain offshoring conditions, and to approve “ex-distributions and exchanges if issued” on the schedule currently expected by management. For more information on the risks associated with Salle Mae`s activities and Navient`s relocation, please refer to Sallie Mae`s sec documents, including her latest business report on Form 10-K. Sallie Mae undertakes no commitment to update forward-looking statements based on new information, future developments or otherwise. After the separation, Sallie Mae will remain the number one financial services company, specializing in education, and the largest creator of private educational credits. Sallie Mae will offer innovative savings products, robust planning tools, responsible private education loans and insurance products to ensure investment in education.

To expand the bank`s portfolio with high-quality private education credits, Sallie Mae will continue to rely on disciplined enserwriting, require school certification, encourage clients to make payments during school and maintain proactive contact with clients and co-signers during school. “As two different companies, Sallie Mae and Navient will use our shared leadership history to promote customer success. The separation will also allow each company to better seize strategic opportunities,” said John (Jack) F. Remondi, President and CEO. “This next chapter brings more focus and value to our customers and shareholders.” The distribution of Navient`s common shares is conditional on compliance or waiver of certain conditions, including, but not limited to, a registration statement on Form 10 for Navient common shares declared effective by the SEC, acceptance of the Navient common stock on the NASDAQ rating, and receipt of a private letter qualified by the IRS as a tax-exempt distribution to Sallie Mae shareholders for the United States.

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