SOURCE: RBC Capital Markets

June 16, 2010 10:28 ET

FinanSure Student Loan Master Trust I Commences Fixed Price Cash Tender Offer for Its Series 2007-1 Senior Auction Rate Student Loan Asset-Backed Notes

WILMINGTON, DE--(Marketwire - June 16, 2010) -  FinanSure Student Loan Master Trust I (the "Issuer") announced today that it has commenced a fixed price cash tender offer for any and all of its outstanding senior auction rate student loan asset-backed notes (the "Notes") not owned by RBC Capital Markets Corporation and its affiliates (collectively, "RBC"). The Notes and the consideration to be offered for their tender (the "Notes Consideration") are as follows:

CUSIP Number   Class   Security Description   Consideration per
$1,000 Principal Amount
             
31771HAA2   A-1   Senior Auction Rate Notes   $975
31771HAB0   A-2   Senior Auction Rate Notes   $975
31771HAC8   A-3   Senior Auction Rate Notes   $975
31771HAE4   A-5   Senior Auction Rate Notes   $975
31771HAK0   A-6   Senior Auction Rate Notes   $975
31771HAL8   A-7   Senior Auction Rate Notes   $975
             

In addition to the Notes Consideration, the Issuer will pay all accrued and unpaid interest on the Notes purchased pursuant to the offer up to, but not including, the Settlement Date (as defined below). The offer will expire at 5:00 P.M., New York City time, on Wednesday, June 23, 2010, unless extended or earlier terminated (the "Expiration Time"). To receive the Notes Consideration, holders of Notes must validly tender their Notes prior to the Expiration Time. The Issuer will pay the Notes Consideration plus all accrued and unpaid interest on the Notes purchased pursuant to the offer promptly after the Expiration Time (the "Settlement Date"), which is expected to be on or about Monday, June 28, 2010. The Issuer expects to obtain funds to purchase the Notes by entering into, or having its sole certificateholder (the "Certificateholder") enter into, a purchase and sale agreement to sell some or all of the Issuer's student loans to a major financial services company (the "Loan Sale").

The Issuer also announced today that it has entered into a purchase agreement with RBC pursuant to which the Issuer may, but is not required to, purchase all of the Issuer's senior and subordinate auction rate student loan asset-backed notes owned by RBC (collectively, the "RBC Notes"). The Issuer expects to purchase the RBC Notes only if the other conditions to the tender offer are satisfied. 

The Certificateholder previously entered into an agreement with the holder of the Issuer's junior subordinate student loan asset-backed notes pursuant to which the Certificateholder may, but is not required to, purchase all these junior subordinate notes. The Certificateholder expects to purchase the junior subordinate notes even if the tender offer is not successful. 

The Notes subject to the tender offer, the RBC Notes and the junior subordinate notes constitute all the Issuer's issued and outstanding debt securities.

The tender offer is subject to the Issuer completing the Loan Sale, along with several other conditions, including but not limited to the tender by holders of at least 75% in aggregate principal amount of the Notes (not including the RBC Notes or the junior subordinate notes) and the Issuer acquiring the RBC Notes, all as set forth in the Offer to Purchase and the Letter of Transmittal dated June 15, 2010. The tender offer is not conditioned on the Certificateholder acquiring the junior subordinate notes.

This press release is neither an offer to purchase nor a solicitation to buy any of the Notes, nor is it a solicitation for acceptance of the tender offer. The Issuer is making the tender offer only by, and pursuant to the terms of, the Offer to Purchase and the Letter of Transmittal. The tender offer is not being made in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, "blue sky" or other laws of such jurisdiction. None of the Issuer, the Certificateholder, the Dealer Manager, the Tender Agent or their respective affiliates is making any recommendation as to whether or not holders should tender their Notes in connection with the tender offer.

The complete terms and conditions of the tender offer are set forth in the Offer to Purchase and Letter of Transmittal that are being sent to holders of the Notes. Holders are urged to read the tender offer documents carefully when they become available. Copies of the Offer to Purchase and Letter of Transmittal may be obtained from the Tender Agent, U.S. Bank National Association, at 1-800-934-6802.

RBC Capital Markets Corporation is the Dealer Manager for the tender offer. Questions regarding the tender offer may be directed to the Dealer Manager at 212-618-5640.

Information contained or incorporated in this press release may be considered forward looking in nature and is subject to various risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or expected.

Contact Information

  • Investor contact:
    RBC Capital Markets Corporation
    212-618-5640