On Deadline

Credit Union Journal, The, October, 2007

Buyout Group Lowers Offer For Sallie Mae

WASHINGTON-The buyout group that had made an offer to buy Sallie Mae has lowered its offering price to $50 a share, down from $60 per share. However, the same group said it would improve the offer in the form of warrants to buy Sallie shares, which it said could eventually be worth as much as $10 a share if Sallie hits earnings expectations.

The buyout group is led by J.C. Flowers and includes JPMorgan Chase, Bank of America, and Friedman Fleischer & Lowe. It is seeking to renegotiate its deal for the student lender now that credit has crunched and there's new legislation that cut subsidies to student lenders. Sallie Mae is objecting to the attempt to renegotiate.

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