Higher Education Loan Authority of the State of Missouri Announces Acceptance for Purchase of Certain of its Student Loan Auction Rate Bonds

ST. LOUIS, April 17, 2012 /PRNewswire/ -- The Higher Education Loan Authority of the State of Missouri (the "Authority") today announced that it has accepted to purchase for cash those of its previously issued student loan auction rate bonds shown on the last page hereof (collectively the "Auction Rate Bonds") issued pursuant to the Authority's Eleventh General Student Loan Program Bond Resolution adopted on February 4, 1994 (as amended and supplemented by the First through Thirty-Second Supplemental Resolutions thereto), pursuant to which Wells Fargo Bank, National Association acts as trustee.  The Auction Rate Bonds were subject to an offer to purchase (the "Offer"), the terms and conditions of which were set forth in the Offer to Purchase dated March 16, 2012 (the "Offer to Purchase").  The Offer, as extended on April 5, 2012, expired at 5:00 p.m. Eastern time on April 12, 2012 (the "Expiration Time"). 

Based on the count by D.F. King & Co., Inc., the information agent and tender agent for the Offer, as of the Expiration Time, $32,200,000 aggregate principal amount of Auction Rate Bonds were validly tendered in the Offer.  In accordance with the terms and conditions of the Offer to Purchase, the Authority has accepted $32,200,000 aggregate principal amount of the validly tendered Auction Rate Bonds to purchase for cash at an aggregate purchase price of $30,251,000, plus accrued interest.  In determining which Auction Rate Bonds to accept for purchase, the Authority followed the methodology set forth in the Offer to Purchase.  The consideration to be paid for each tendered Auction Rate Bond accepted for purchase will be paid in the amounts and in accordance with the terms set forth in the Offer to Purchase, and the purchase price did not exceed the applicable maximum purchase price set forth in the Offer to Purchase.

The Authority has notified D.F. King & Co., Inc., as information agent and tender agent, regarding which validly tendered Auction Rate Bonds have been accepted for purchase.  D.F. King & Co., Inc. will provide this information to The Depository Trust Company, who will then transmit the information to its participants to provide to their customers. 

The consideration to be paid to holders of Auction Rate Bonds accepted by the Authority for purchase in the Offer will be paid in the amounts and in accordance with the terms set forth in the Offer to Purchase, which is expected to occur on the settlement date of April 19, 2012. All tendered Auction Rate Bonds accepted for purchase will be cancelled on the settlement date.

Morgan Stanley & Co. LLC acted as the dealer manager for Offer.  

D.F. King & Co., Inc. acted as the information agent and tender agent for the Offer.

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 Auction Rate Bonds.  

About the Higher Education Loan Authority of the State of Missouri

The Authority is one of the largest student loan companies dedicated to providing excellence in student loan servicing in America and is a leading holder and secondary market of student loans with more than $4 billion in assets.  For over 30 years, students, families and schools have come to depend and rely on the Authority to assist them with the servicing needs of their student loans and have come to expect the highest levels of service which the Authority has consistently provided to enable them to successfully complete postsecondary educational programs.

Forward-Looking Statements

Forward-looking statements in this press release 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 Authority.

(1) CUSIP is a registered trademark of American Bankers Association. Neither the Authority nor the Dealer Manager makes any representation as to, or takes responsibility for, the accuracy of such CUSIP numbers. CUSIP numbers are provided for convenience of reference only.

SOURCE Higher Education Loan Authority of the State of Missouri

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