Sallie Mae announces new financing agreement

RESTON, Va.—SLM Corporation, commonly known as Sallie Mae, announced today that it had received commitments for $31 billion of 364-day financing from a consortium of banks led by Bank of America, JPMorgan Chase, Barclays Capital, Deutsche Bank, Credit Suisse, and The Royal Bank of Scotland, and from UBS. This financing will replace the $30 billion interim financing put in place by Bank of America and JPMorgan Chase as part of the proposed merger transaction. Funding under the commitments is subject to various conditions.

As part of this new financing arrangement, the lawsuit filed by Sallie Mae related to the proposed merger of the company, as well as all counterclaims, will be dismissed and the merger agreement has been terminated.