SOURCE: The First Marblehead Corporation

September 20, 2007 09:35 ET

First Marblehead Announces Expected Revenues on $2.93 Billion Private Student Loan Securitizations

BOSTON, MA--(Marketwire - September 20, 2007) - The First Marblehead Corporation (NYSE: FMD) today announced its estimated revenues in connection with its previously announced securitizations involving The National Collegiate Student Loan Trust (NCSLT) 2007-3 and NCSLT 2007-4. NCSLT 2007-3 expects to issue approximately $1.464 billion in principal amount of asset-backed securities and acquire private student loans with a principal and accrued interest balance of approximately $1.02 billion. NCSLT 2007-4 expects to issue approximately $1.464 billion in principal amount of asset-backed securities and acquire private student loans with a principal and accrued interest balance of approximately $1.02 billion. The two transactions in the aggregate will issue approximately $2.93 billion in principal amount of asset-backed securities and acquire private student loans with a principal and accrued interest balance of approximately $2.04 billion.

Ambac Assurance Corporation is expected to issue a note guaranty insurance policy in conjunction with the notes to be issued by each trust. It is a condition to the issuance of the notes that they be rated in the highest rating category of at least two rating agencies. The ratings assigned to the offered notes will be issued based on the financial guarantee rating of Ambac Assurance Corporation as the note insurer.

For the two transactions together, First Marblehead expects to recognize revenue of approximately $306.3 million. First Marblehead expects to receive approximately $176.9 million in up-front structural advisory fees and, in addition, over the terms of the Trusts, additional structural advisory fees from the Trusts with an estimated discounted present value of approximately $24.4 million, as well as residual revenue with an estimated discounted present value of approximately $105.0 million.

At the closing of the NCSLT 2007-3 securitization, First Marblehead expects to receive up-front structural advisory fees of approximately $88.5 million, or 8.7% of the private student loan balance securitized. 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 $12.2 million, or 1.2% of the loan balance securitized, as well as residual revenue with an estimated discounted present value of approximately $52.5 million, or 5.1% of the loan balance securitized. The blended yield for the securitization, representing total securitization revenues as a percentage of the total principal and accrued interest balance of the loans securitized is expected to be approximately 15.0%.

At the closing of the NCSLT 2007-4 securitization, First Marblehead expects to receive up-front structural advisory fees of approximately $88.4 million, or 8.7% of the private student loan balance securitized. 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 $12.2 million, or 1.2% of the loan balance securitized, as well as residual revenue with an estimated discounted present value of approximately $52.5 million, or 5.1% of the loan balance securitized. The blended yield for the securitization, representing total securitization revenues as a percentage of the total principal and accrued interest balance of the loans securitized is expected to be approximately 15.0%.

The loans to be securitized in the transactions were originated by several different banks under various loan programs that were structured with the assistance of First Marblehead. NCSLT 2007-3 expects that approximately 81% of the loans to be purchased by it at closing will be "direct-to-consumer" loans and that the remaining 19% of the loans to be purchased by it at closing will be "school channel" loans. Up-front structural advisory fees attributable to direct-to-consumer loans are expected to represent approximately 9.5% of the direct-to-consumer loan balance securitized while additional structural advisory fees and residual revenues on these loans are expected to represent approximately 1.2% and 5.9% respectively. Up-front structural advisory fees attributable to school channel loans are expected to represent approximately 5.1% of the school channel loan balance securitized while additional structural advisory fees and residual revenues on these loans are expected to represent approximately 1.2% and 1.9% respectively.

NCSLT 2007-4 expects that approximately 81% of the loans to be purchased by it at closing will be direct-to-consumer loans and that the remaining 19% of the loans to be purchased by it at closing will be school channel loans. Up-front structural advisory fees attributable to direct-to-consumer loans are expected to represent approximately 9.5% of the direct-to-consumer loan balance securitized while additional structural advisory fees and residual revenues on these loans are expected to represent approximately 1.2% and 5.9% respectively. Up-front structural advisory fees attributable to school channel loans are expected to represent approximately 5.1% of the school channel loan balance securitized while additional structural advisory fees and residual revenues on these loans are expected to represent approximately 1.2% and 1.9% respectively.

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.

The National Collegiate Funding LLC has filed a registration statement (including prospectuses) with the SEC for the offerings to which this communication relates. Before you invest in one or both of the offerings by the trusts, you should read the prospectus in that registration statement related to that offering and other documents that The National Collegiate Funding LLC has filed with the SEC for more complete information about The National Collegiate Funding LLC, the trusts, the securitization transactions, the student loans and the offerings. You may obtain these documents free of charge by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, The National Collegiate Funding LLC, any underwriter or any dealer participating in the offering will arrange to send you a prospectus if you request it by calling toll-free 1-800-831-9146.

Statements in this press release regarding the planned purchases of private student loans and the related issuances of student loan asset-backed notes, including statements regarding the size of each transaction, up-front structural advisory fees, additional structural advisory fees, residual revenues, yields, collateral pool composition and the structure of the planned transactions, as well as 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 September 20, 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 or yields from the transactions involving NCSLT 2007-3 and NCSLT 2007-4, or the timing of events, 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 each trust and the key assumptions we have used to estimate the present value of additional structural advisory fees and revenues; any variance between the estimated and actual amount of private student loans available for purchase; the allocation of revenues and costs to direct-to-consumer and school channel loans in estimating yields by marketing channel; the estimated mix of loans between marketing channels; satisfaction of closing conditions related to the purchase of private student loans and issuance of student loan asset-backed securities by each trust, and the other factors set forth under the caption "Risk Factors" in the prospectus supplements filed by The National Collegiate Funding LLC for each trust with the Securities and Exchange Commission on September 19, 2007. Important factors that could cause or contribute to differences between the actual performances of each trust and our key assumptions include economic, legislative, regulatory and competitive factors affecting prepayment, default and recovery rates on each trust's underlying securitized loan portfolio and interest rate trends over the term of the trusts. 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

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