PHEAA Announces Tender Offer with Respect to Certain of its Student Loan Revenue Bonds

Main Content

Harrisburg, PA (May 31, 2011)—The Pennsylvania Higher Education Assistance Agency (the "Agency") today announced that it has commenced an offer (the "Offer") to purchase up to $2,300,000,000 Auction Rate Bonds, for cash, upon the terms and subject to the conditions set forth in the Offer to Purchase dated May 31, 2011 (the "Offer to Purchase"), with respect to the outstanding auction rate Student Loan Revenue Bonds listed below (collectively the "Auction Rate Bonds").

Student Loan Revenue Bonds, Senior and Subordinate Series A through NN

Series Maturity Date Original
Principal
Amount
Outstanding
Principal
Amount
(As of
April 30, 2011)
CUSIP1 Purchase Price

(Per $1,000 Principal Amount)

Taxable Senior (Series and Subseries) Bonds

A 8/1/2027 $35,000,000 $28,750,000 709163BN8 $918.00
C 3/1/2028 50,000,000 41,100,000 709163BQ1 918.00
D 11/1/2028 45,000,000 37,000,000 709163BR9 918.00
F-1 10/1/2040 55,000,000 45,000,000 709163BX6 918.00
F-2 10/1/2040 55,000,000 45,000,000 709163BY4 918.00
F-3 10/1/2040 55,000,000 45,200,000 709163BZ1 918.00
H 10/1/2040 165,000,000 135,500,000 709163BV0 918.00
J-1 12/1/2040 53,750,000 44,150,000 709163CB3 918.00
J-2 12/1/2040 53,750,000 44,000,000 709163CC1 918.00
J-3 12/1/2040 53,750,000 44,150,000 709163CD9 918.00
J-4 12/1/2040 53,750,000 44,150,000 709163CE7 918.00
L-1 8/1/2041 95,000,000 78,050,000 709163CH0 918.00
L-2 8/1/2041 95,000,000 77,750,000 709163CJ6 918.00
R-1 8/1/2042 75,000,000 61,600,000 709163CZ0 918.00
R-2 8/1/2042 75,000,000 61,350,000 709163DA4 918.00
T-1 9/1/2042 94,100,000 77,300,000 709163DC0 918.00
T-2 9/1/2042 94,100,000 77,300,000 709163DD8 918.00
T-3 9/1/2042 94,100,000 77,300,000 709163DE6 918.00
T-4 9/1/2042 94,100,000 77,000,000 709163DF3 918.00
T-5 9/1/2042 94,100,000 77,300,000 709163DG1 918.00
V-1 10/1/2042 83,400,000 68,500,000 709163DJ5 882.00
V-2 10/1/2042 83,300,000 68,400,000 709163DK2 882.00
V-3 10/1/2042 83,300,000 68,200,000 709163DL0 882.00
V-4 10/1/2042 50,000,000 41,100,000 709163DM8 882.00
Y-1 9/1/2043 75,000,000 61,400,000 709163DT3 882.00
Y-2 9/1/2043 75,000,000 61,600,000 709163DU0 882.00
Y-3 9/1/2043 75,000,000 61,600,000 709163DV8 882.00
Y-4 9/1/2043 75,000,000 61,600,000 709163DW6 882.00
BB-1 11/1/2044 75,000,000 61,600,000 709163EE5 882.00
BB-2 11/1/2044 75,000,000 61,600,000 709163EF2 882.00
BB-3 11/1/2044 75,000,000 61,600,000 709163EG0 882.00
BB-4 11/1/2044 75,000,000 61,400,000 709163EH8 882.00
CC-1 8/1/2045 75,000,000 61,600,000 709163EM7 918.00
CC-2 8/1/2045 75,000,000 61,600,000 709163EN5 918.00
CC-3 8/1/2045 50,000,000 41,100,000 709163EP0 918.00
DD-1 9/1/2045 100,000,000 82,150,000 709163EQ8 918.00
DD-2 9/1/2045 100,000,000 81,800,000 709163ER6 918.00
EE-1 12/1/2045 95,000,000 78,050,000 709163ES4 918.00
EE-2 12/1/2045 95,000,000 77,750,000 709163ET2 918.00
EE-3 12/1/2045 95,000,000 78,050,000 709163EU9 918.00
EE-4 12/1/2045 95,000,000 78,050,000 709163EV7 918.00
GG-1 12/1/2045 97,000,000 79,400,000 709163EX3 882.00
GG-2 12/1/2045 97,000,000 79,700,000 709163EY1 882.00
GG-3 12/1/2045 96,000,000 78,900,000 709163EZ8 882.00
GG-4 12/1/2045 70,000,000 57,500,000 709163FA2 882.00
GG-5 12/1/2045 70,000,000 57,500,000 709163FB0 882.00
GG-6 12/1/2045 70,000,000 57,500,000 709163FC8 882.00
HH-1 5/1/2046 97,000,000 79,350,000 709163FF1 926.00
HH-2 5/1/2046 97,000,000 79,350,000 709163FG9 926.00
HH-3 5/1/2046 97,000,000 79,650,000 709163FH7 926.00
HH-4 5/1/2046 97,000,000 79,650,000 709163FJ3 926.00
HH-5 5/1/2046 97,000,000 79,650,000 709163FK0 926.00
HH-6 5/1/2046 97,000,000 79,650,000 709163FL8 926.00
HH-7 5/1/2046 97,000,000 79,650,000 709163FM6 926.00
HH-8 5/1/2046 97,000,000 79,650,000 709163FN4 926.00
HH-9 5/1/2046 97,000,000 79,650,000 709163FP9 926.00
HH-10 5/1/2046 97,000,000 79,650,000 709163FQ7 926.00
JJ-1 6/1/2046 75,000,000 61,600,000 709163FS3 918.00
JJ-2 6/1/2046 75,000,000 61,600,000 709163FT1 918.00
JJ-3 6/1/2046 100,000,000 82,125,000 709163FU8 918.00
JJ-4 6/1/2046 75,000,000 61,350,000 709163FV6 918.00
JJ-5 6/1/2046 50,000,000 40,900,000 709163FW4 918.00
JJ-6 6/1/2046 75,000,000 61,350,000 709163FX2 918.00
JJ-7 6/1/2046 75,000,000 61,600,000 709163FY0 918.00
JJ-8 6/1/2046 75,000,000 61,600,000 709163GA1 918.00
JJ-9 6/1/2046 75,000,000 61,600,000 709163GB9 918.00
JJ-10 6/1/2046 52,500,000 43,125,000 709163GC7 918.00
LL-1 4/1/2047 70,000,000 57,500,000 709163GK9 918.00
LL-2 4/1/2047 70,000,000 57,500,000 709163GL7 918.00
LL-3 4/1/2047 70,000,000 57,500,000 709163GM5 918.00
LL-4 4/1/2047 60,000,000 49,275,000 709163GN3 918.00
LL-5 4/1/2047 60,000,000 49,100,000 709163GP8 918.00
LL-6 4/1/2047 60,000,000 49,275,000 709163GQ6 918.00
LL-7 4/1/2047 90,000,000 73,925,000 709163GR4 918.00
LL-8 4/1/2047 90,000,000 73,925,000 709163GS2 918.00
LL-9 4/1/2047 90,000,000 73,925,000 709163GT0 918.00
LL-10 4/1/2047 90,000,000 73,925,000 709163GU7 918.00
MM-1 6/1/2047 69,750,000 57,275,000 709163GV5 926.00
MM-2 6/1/2047 50,000,000 40,900,000 709163GW3 926.00
MM-3 6/1/2047 50,000,000 40,900,000 709163GX1 926.00
MM-4 6/1/2047 50,000,000 41,075,000 709163GY9 926.00
MM-5 6/1/2047 50,000,000 41,075,000 709163GZ6 926.00
MM-6 6/1/2047 69,750,000 57,275,000 709163HB8 926.00

Tax Exempt Senior (Series and Subseries) Bonds

N-1 6/1/2037 70,000,000 57,500,000 709163CT4 926.00
N-2 6/1/2037 70,000,000 57,300,000 709163CU1 926.00
P-1 3/1/2022 70,000,000 57,500,000 709163CW7 926.00
P-2 3/1/2022 70,000,000 57,300,000 709163CX5 926.00
W-1 6/1/2038 80,000,000 65,700,000 709163DQ9 926.00
W-2 6/1/2038 60,000,000 49,300,000 709163DR7 926.00
Z-1 6/1/2039 50,000,000 41,075,000 709163DX4 926.00
Z-2 6/1/2039 40,000,000 32,850,000 709163DY2 926.00
Z-3 6/1/2039 40,000,000 32,850,000 709163DZ9 926.00
Z-4 6/1/2039 40,000,000 32,850,000 709163EA3 926.00
AA-1 6/1/2039 57,000,000 46,850,000 709163EB1 926.00
AA-2 6/1/2039 57,000,000 46,850,000 709163EC9 926.00
AA-3 6/1/2039 57,000,000 46,650,000 709163ED7 926.00

Taxable Subordinate Bonds

B 8/1/2027 15,000,000 15,000,000 709163BP3 630.00
E 11/1/2028 5,000,000 5,000,000 709163BS7 630.00
G 10/1/2040 10,000,000 10,000,000 709163CA5 630.00
I 10/1/2040 10,000,000 10,000,000 709163BW8 630.00
K 12/1/2040 25,000,000 25,000,000 709163CF4 630.00
M 8/1/2041 10,000,000 10,000,000 709163CK3 630.00
S 8/1/2042 10,000,000 10,000,000 709163DB2 630.00
U 9/1/2042 29,500,000 29,500,000 709163DH9 630.00
FF 12/1/2045 20,000,000 20,000,000 709163EW5 630.00
II 5/1/2046 30,000,000 30,000,000 709163FR5 630.00
KK 6/1/2046 22,500,000 22,500,000 709163GD5 630.00
NN 6/1/2047 10,500,000 10,500,000 709163HA0 630.00

Tax Exempt Subordinate Bonds

O 6/1/2037 10,000,000 10,000,000 709163CV9 526.00
Q 3/1/2022 10,000,000 10,000,000 709163CY3 526.00
X 6/1/2038 10,000,000 10,000,000 709163DS5 526.00

1CUSIP is a registered trademark of American Bankers Association. None of PHEAA, the Dealer Manager, the Trustee, the Information Agent or the Tender Agent makes any representation as to, or takes responsibility for, the accuracy of such CUSIP numbers. CUSIP numbers are provided for convenience of reference only.

Subject to the terms of the Offer to Purchase, the Agency will purchase any Auction Rate Bonds accepted for purchase at separate purchase prices per $1,000 principal amount set forth above, each as described in the Offer to Purchase, plus accrued and unpaid interest thereon to, but not including, the date that payment for such Auction Rate Bonds is made by the Agency. The Offer will expire at 5:00 p.m., Eastern Time, on June 21, 2011, unless extended (the “Expiration Time”). Any tendered Auction Rate Bonds may not be withdrawn at any time.

The Agency is offering to purchase up to $2,300,000,000 of principal amount of Auction Rate Bonds, and may not purchase all Auction Rate Bonds tendered for purchase pursuant to the Offer. The Auction Rate Bonds to be purchased, if any, will be selected as described in the Offer to Purchase.

Morgan Stanley & Co. Incorporated will act as the dealer manager for the tender offer.

Morgan Stanley & Co. Incorporated
1585 Broadway, 2nd Floor
New York, NY 10036
Phone: (212) 761-0925
Attn: PHEAA Tender Offer

Bondholder Communications LLC will act as the information and tender agent. Bondowners or their representatives may request copies of the Offer to Purchase, which contains the full terms and conditions of the Offer, and submit any questions or requests for assistance to:

Bondholder Communications Group LLC
30 Broad Street, 46th Floor
New York, NY 10004
Attn: Phoebe Adams
Fax: (212) 437-9827

Banks and Brokers Call: (212) 809-2663
All Others call Toll Free: (888) 385-2663
Email: padams@bondcom.com
Website: www.bondcom.com/pheaa

This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to purchase with respect to any Bonds. The Offer is being made solely pursuant to the Offer to Purchase. The Offer is not being made to holders of Bonds in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction.

About the Pennsylvania Higher Education Assistance Agency

Created in 1963 by the Pennsylvania General Assembly, the Agency has evolved into one of the nation's leading student aid organizations. Today, the Agency is a national provider of student financial aid services, serving millions of students and thousands of schools through its loan guaranty, loan servicing, financial aid processing, outreach, and other student aid programs.

The Agency's earnings are used to support its public service mission and to pay its operating costs, including administration of the Pennsylvania State Grant and other state-funded student aid programs. The Agency continues to devote its energy, resources, and imagination to developing innovative ways to ease the financial burden of higher education for students, families, schools, and taxpayers.

The Agency conducts its student loan servicing activities nationally as American Education Services and FedLoan Servicing.

Forward-Looking Statements

Forward-looking statements in this press release, such as the scheduled expiration of the Offer, are based on current expectations. This press release contains forward-looking statements that involve a variety of business risks and other uncertainties that could cause actual results to differ materially. Words such as “expects,” “intends,” “plans,” “projects,” “believes,” “estimates” and similar expressions are used to identify these forward-looking statements.

These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that are difficult to predict. Forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Actual outcomes and results may differ materially from what is expressed or forecast in these forward-looking statements. Forward-looking statements speak only as of the date made. There is no obligation to update any forward-looking statements to reflect the events or circumstances arising after the date as of which they are made. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on the forward-looking statements included in this release or that may be made elsewhere from time to time by, or on behalf of, the Agency.