SOURCE: The First Marblehead Corporation

June 07, 2007 17:06 ET

First Marblehead Announces Completion of $122.2 Million Securitization of GATE Student Loans

BOSTON, MA--(Marketwire - June 7, 2007) - The First Marblehead Corporation (NYSE: FMD) today announced the closing of a securitization involving The National Collegiate Trust 2007-A. The Trust raised approximately $122.2 million from the sale of asset-backed securities in a private placement transaction and acquired GATE student loans with a principal and accrued interest balance of approximately $96.6 million. The GATE loans were originated with the assistance of First Marblehead and funded by Bank of America.

First Marblehead received up-front structural advisory fees of approximately $1.8 million, or approximately 1.9% of the private student loan balance securitized, at the closing of the securitization. In addition, over the term of the Trust, First Marblehead expects to receive additional structural advisory fees from the Trust with an estimated discounted present value of approximately $1.0 million, or 1.0% of the loan balance securitized, as well as residual revenues with an estimated discounted present value of approximately $3.2 million, or 3.3% of the loan balance securitized. These revenue estimates are preliminary, based on the estimated loan balances at closing, which remain subject to post-closing reconciliation.

About The First Marblehead Corporation. First Marblehead, a leader in creating solutions for education finance, provides outsourcing services for private, non-governmental, education lending in the United States. The Company helps meet the growing demand for private education loans by providing national and regional financial institutions and educational institutions, as well as businesses and other enterprises, with an integrated suite of design, implementation and securitization services for student loan programs tailored to meet the needs of their respective customers, students, employees and members. For more information, visit www.firstmarblehead.com.

Statements in this press release regarding the purchase of private student loans by The National Collegiate Trust 2007-A and the related issuance of student loan asset-backed notes, including statements regarding First Marblehead's estimated additional structural advisory fees and residual revenues, and any other statements that are not purely historical, constitute forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our plans, estimates and expectations as of June 7, 2007. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future results, plans, estimates or expectations contemplated by us will be achieved. You are cautioned that matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, regulatory, competitive and other factors, which may cause actual results or performance, including First Marblehead's actual revenues from the securitization, to be materially different than those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include any variance between the actual performance of The National Collegiate Trust 2007-A and the key assumptions used to estimate the present value of additional structural advisory fees and residual revenue; any variance between the estimated and actual reconciled balance of private student loans purchased by the Trust at closing; and the other factors set forth under the caption "Item 1A. Risk Factors" in First Marblehead's quarterly report on Form 10-Q filed with the Securities and Exchange Commission on May 10, 2007. Important factors that could cause or contribute to differences between the actual performance of the Trust and our key assumptions include economic, legislative, regulatory, competitive and other factors affecting prepayment, default and recovery rates on the Trust's underlying securitized loan portfolio, including full or partial prepayments as a result of loan consolidation activity and interest rate trends over the term of the Trust. We disclaim any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

© 2007 First Marblehead

Contact Information

  • Contact:

    Gary F. Santo, Jr.
    Vice President
    Investor Relations
    617-638-2065

    Janice D. Walker
    Vice President
    Corporate Communications
    617-638-2047