Nelnet, Inc. Increases Tender Offer Consideration of Cash Tender Offer and Consent Solicitation for 7.400% Fixed-to-Floating Rate Capital Efficient Notes
January 30, 2017 at 10:00 pm
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Nelnet, Inc. announced that it has amended the terms of its previously announced cash tender offer to purchase any and all of its outstanding 7.400% Fixed-to-Floating Rate Capital Efficient Notes (Notes) of which $200 million in aggregate principal amount is currently outstanding, and related consent solicitation to effect certain amendments to the indenture governing the Notes by increasing the total consideration payable in the offer to $840.00 per $1,000 principal amount of Notes tendered. The company has been informed that a holder of approximately $14.5 million aggregate principal amount of the Notes (representing approximately 29% of holdings for purposes of determining whether consents from holders of not less than a majority in principal amount of the outstanding Notes have been received) intends to participate in the offer at the increased total consideration of $840.00 per $1,000 principal amount of Notes tendered. In addition, affiliates of the company hold approximately $150 million of the outstanding principal amount of the Notes, and will be excluded from tendering their Notes pursuant to the offer. 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 (Expiration Date). Holders who validly tender (and do not validly withdraw) their Notes and provide their consents to the amendments to the Indenture after 5:00 p.m., New York City time, on February 3, 2017 (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 $790.00 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. Tendered Notes may be withdrawn at any time prior to 5:00 p.m., New York City time, on February 3, 2017, as such time and date may be extended by the company (Withdrawal Time).
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.
Nelnet, Inc. Increases Tender Offer Consideration of Cash Tender Offer and Consent Solicitation for 7.400% Fixed-to-Floating Rate Capital Efficient Notes