Sallie Mae (NASDAQ: SLM) announced the purchase price for its cash tender offer to buy all outstanding 3.125% senior notes due 2026. The company set the purchase price at $995.83 per $1,000 principal amount of notes, calculated at 2 p.m. New York time on May 12, 2026.

The tender offer covers $500 million in principal amount of the notes, which mature on November 2, 2026. The purchase price was determined using a reference yield of 3.786% based on the 4.125% U.S. Treasury security due October 31, 2026, plus a fixed spread of 25 basis points.

Holders whose notes are purchased will receive the purchase price plus accrued and unpaid interest from the last interest payment date up to the settlement date, expected to be May 15, 2026. The tender offer expires at 5 p.m. New York time on May 12, 2026, unless extended or terminated earlier.

The tender offer is connected to a new debt securities offering by Sallie Mae. Proceeds from the new offering will fund the note repurchase. The tender offer is conditional on completing the new debt offering, though no assurance exists that the new offering will be completed.

Sallie Mae expects to repay any notes not tendered at their maturity date. The company plans to deposit sufficient funds with Deutsche Bank National Trust Company as trustee to satisfy and discharge the indenture governing the notes shortly after the settlement date, subject to completing both the new offering and tender offer.

J.P. Morgan Securities LLC serves as the exclusive dealer manager for the tender offer. D.F. King & Co., Inc. acts as the tender agent and information agent.