INDIANAPOLIS - Secondary Market Services Inc., Indianapolis, has completed the sale of $284.7 million in securities backed by student loans.
The sale is the third such offering by the organization since June 1994 and brings its total student loan securitizations over that period to $609 million.
CS First Boston underwrote the latest offering, which was structured in two tranches. The $274.7 million senior floating-rate notes received triple-A ratings from both Moody's Investors Service and Standard & Poor's Ratings Group and were priced at 24 basis points over the one- month London interbank offered rate. The $10 million in subordinated certificates were rated A2 by Moody's and A by S&P and will pay 65 basis points over one-month Libor.
Secondary Market Services is a taxable affiliate of USA Group, a nonprofit corporation. USA Group's stated objective is to offer financial and information services to support education.