SOURCE: NextStudent

September 05, 2007 17:10 ET

NextStudent Inc. Announces $1.4 Billion Securitization

PHOENIX, AZ--(Marketwire - September 5, 2007) - NextStudent Inc., a leading Phoenix-based education funding company, announced today that, through its affiliate companies, it will be coming to the domestic and international capital markets next week with its second securitization when NextStudent Master Trust I issues $1.4 billion in auction-rate student loan-backed notes.

J.P. Morgan Securities Inc. will be the lead investment banker on the deal. Co-managers include Goldman, Sachs & Co., Morgan Stanley & Co. Inc. and Banc of America Securities LLC.

"We look forward to the successful launch of our second securitization as NextStudent continues its transformation from a student loan scholarship search and marketing company to a full-service student loan finance company," says John F. (Jack) Wallace, III, Executive Vice President of Finance.

The proceeds from the securitization will be used to purchase federally guaranteed consolidation loans previously held in an asset-backed commercial paper conduit. An additional $350 million "will be used to provide additional student loan capital and purchase Federal Consolidation Loans originated during the next six months," according to Wallace.

About NextStudent

NextStudent was the fourth largest consolidator of federally guaranteed student loans for the federal fiscal year ended September 30, 2006, up from 17th the previous year. NextStudent offers one-on-one education finance counseling and has a portfolio of highly competitive education finance products and services, including a free online scholarship search engine, federally guaranteed parent and student loans, private student loans, both federal and private student loan consolidation programs, and college savings plans. For more information about NextStudent and its student loan programs, please visit the company's website at www.nextstudent.com.

Contact Information

  • Contact:
    John F. (Jack) Wallace, III
    Executive Vice President of Finance
    (480) 250-1992 (c)
    (623) 879-5014 (w)
    Email Contact