Nelnet, Inc. Commences Cash Tender Offer and Consent Solicitation for 7.400% Fixed-To-Floating Rate Capital Efficient Notes
January 23, 2017 at 05:11 pm
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Nelnet, Inc. announced that it has commenced a cash tender offer to purchase any and all of its outstanding 7.400% Fixed-to-Floating Rate Capital Efficient Notes, of which $200 million in aggregate principal amount is currently outstanding, and a related consent solicitation to effect certain amendments to the indenture governing the Notes. Each holder who validly tenders (and does not validly withdraw) its Notes and provides its consent to the amendments to the Indenture before 5:00 p.m., New York City time, on February 3, 2017, as such time and date may be extended by the company, will receive, if such Notes are accepted for purchase pursuant to the Offer, total consideration of $800.00 per $1,000 principal amount of the Notes tendered, which includes $50.00 per $1,000 principal amount of the Notes tendered as the consent payment. In addition, accrued interest up to, but not including, the applicable payment date of the Notes will be paid in cash on all validly tendered and accepted Notes. The Offer is scheduled to expire at 11:59 p.m., New York City time, on February 17, 2017, unless extended or terminated pursuant to the terms of the tender offer. Holders who validly tender (and do not validly withdraw) their Notes and provide their consents to the amendments to the Indenture after the Consent Payment Deadline but on or prior to the Expiration Date will receive, if such Notes are accepted for purchase pursuant to the Offer, the Tender Offer Consideration of $750.00 per $1,000 principal amount of the Notes, plus any accrued and unpaid interest on the Notes up to, but not including, the payment date, but will not receive the Consent Payment. Tendered Notes may be withdrawn at any time prior to 5:00 p.m., New York City time, on February 3, 2017, as such time and date may be extended by the company, but not thereafter, except to the extent that the Company is required by law to provide additional withdrawal rights. Subject to the terms and conditions described below, payment for Notes that are validly tendered (and not validly withdrawn) will occur promptly following the Expiration Date, provided that the Company may elect to make payment for Notes that are validly tendered (and not validly withdrawn) on or prior to the Consent Payment Deadline prior to the Expiration Date.
Nelnet, Inc. operates businesses that are engaged in loan servicing and education technology services and payments. The Company's segments include Loan Servicing and Systems (LSS), Education Technology Services and Payments (ETSP), Asset Generation and Management (AGM), and Nelnet Bank. The LSS segment is focused on student and consumer loan servicing, loan servicing-related technology solutions and outsourcing business services. This segment includes the brands Nelnet Diversified Solutions, Nelnet Government Services and others. The ETSP segment provides education and payment technology and services for K-12 schools, higher education institutions, churches, and businesses in the United States and internationally. The AGM segment includes the acquisition and management of student and other loan assets, including investment interests therein. The Nelnet Bank includes an Internet Utah-chartered industrial bank focused on the private education and unsecured consumer loan markets.