Sallie Mae Shareholders Approve $25 Billion Buyout
Shareholders of Sallie Mae voted today in favor of a $60-a-share offer from a group of buyout firms to take the Reston student lender private. (See Sallie Mae's statement.) The buyout price offered by private equity firm J.C. Flowers represents a premium over the current share price of Sallie Mae stock, which closed Wednesday at $47.18.
The transaction however still faces some hurdles. The private equity buyers in recent weeks have indicated that proposed changes to the federal student loan program could be grounds for canceling the purchase. Late Tuesday, citing uncertainty surrounding the transaction, the credit rating agency Moody's downgraded the debt ratings for Sallie Mae, which is formally known as SLM Corp. Sallie Mae said in a statement last week that it expects the deal to be completed as planned.
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