US-listed loan manager Navient Corporation, formally launched after separating from originator Sallie Mae this month, is marketing $747 million of asset-backed securities linked to student loans, according to Bloomberg.
A sale could go through as soon as Tuesday, it was reported. Royal Bank of Canada and Bank of America are said to be arranging the transaction.
On 1 May 2014, Sallie Mae was split into two publically traded entities: a consumer banking business known as SLM Corp, and a newly named loan management, servicing and asset recovery business, called Navient.
Navient holds loans originated by the student finance arm of Sallie Mae. The firm services almost $300 billion in student loans, according to a statement released at the time of the separation.
Sallie Mae previously provided federally guaranteed student loans under the Federal Family Education Loan Program (FFELP). It now manages $6.5 billion in private education loans.
It sold $994 million of bonds tied to loans under the now defunct FFELP in January, according to Bloomberg. The changes at Sallie Mae are as a result of legislation passed in 2010 which cut private lenders out of the market for government-guaranteed debt.
Navient had not responded to a request seeking comment at time of going to press.