Higher Education Loan Authority of the State of Missouri Announces Commencement of Tender Offer with Respect to Certain of its Student Loan Auction Rate Bonds

Sep 30, 2011, 15:04 ET from The Higher Education Loan Authority of the State of Missouri

ST. LOUIS, Sept. 30, 2011 /PRNewswire/ -- The Higher Education Loan Authority of the State of Missouri (the "Authority") today announced that it has commenced an offer (the "Offer") to purchase for aggregate cash consideration up to $160,000,000 (or such greater or lesser amounts as may be available therefore), upon the terms and subject to the conditions set forth in the Offer to Purchase dated September 30, 2011 (the "Offer to Purchase").  The Offer is with respect to the outstanding student loan auction rate bonds listed 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, collectively, the "Resolution") pursuant to which Wells Fargo Bank, National Association acts as trustee (the "Trustee").  All of the consideration available to complete the Offer will consist of available cash on deposit with the Trustee in the funds and accounts under the Resolution.

Upon the terms and subject to the conditions set forth in the Offer to Purchase, the Authority will purchase those Auction Rate Bonds, if any, validly tendered to the Authority and accepted for purchase by the Authority at the price specified by the tendering holder, plus accrued and unpaid interest (other than carry-over interest, if any), in each case as determined in the manner provided in the Offer to Purchase.  The Auction Rate Bonds within a series that will be accepted for purchase by the Authority, if any, will generally be selected in order of increasing tender price, beginning with the lowest tender price received with respect to an otherwise qualified tender for such series.  As a result, a tendering holder may receive a tender price for its tendered Auction Rate Bonds that is different from the tender price another holder may receive for its tendered Auction Rate Bonds of the same series or another series of Auction Rate Bonds.  The Authority will not consider the purchase of Auction Rate Bonds in any series at a tender price which exceeds the maximum price for that series as set forth in the table above.

The Offer will expire at 5:00 p.m., Eastern Time, on October 20, 2011, unless extended or earlier terminated by the Authority (the "Expiration Time").  Tendered Auction Rate Bonds may not be withdrawn.  The Authority's obligation to purchase Auction Rate Bonds in the Offer is subject to the terms and conditions set forth in the Offer to Purchase and requires the satisfaction or waiver of a number of conditions specified therein.

The Authority reserves the right to amend, modify or withdraw the Offer at any time, and to reject any tender, in whole or in part, for any reason.  The Authority 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.  The Authority will promptly return any Auction Rate Bonds that are not accepted for purchase by the Authority in the Offer.  

Auction Rate Bonds may be tendered by transferring Auction Rate Bonds through The Depository Trust Company's Automated Tender Offer Program by following the procedures set forth in detail in the Offer to Purchase.

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

Morgan Stanley & Co. LLC
1585 Broadway, 2nd Floor
New York, New York 10036
Attention:  MOHELA Tender Offer
Telephone:  (212) 761-0925
Telephone: (800) 223-2440 (toll free)

D.F. King & Co., Inc. will act as the information agent and tender agent.  Holders or their representatives may request copies of the Offer to Purchase, which contains the full terms and conditions of the Offer, and the related documents, and submit any questions or requests for assistance to:

D.F. King & Co., Inc.
48 Wall Street, 22nd Floor
New York, New York 10005
Attn:  Elton Bagley
Fax:  (212) 809-8838

Banks and Brokers Call:  (212) 269-5550
All Others call Toll Free:  (800) 431-9643
Email:  MOHELA@dfking.com
Website:  www.dfking.com/mohela

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.  The Offer may be made solely pursuant to the terms of the Offer to Purchase.  The Offer to Purchase contains important information that should be read carefully in its entirety before any decision is made to tender or not tender Auction Rate Bonds pursuant to the Offer or at what price any tender should be made.  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 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 we have consistently provided to enable them to successfully complete postsecondary educational programs.

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 Authority.


Series

Outstanding
Principal
Amount

CUSIP No. (1)

Minimum Denomination
for Offer


Tax-Exempt Senior Auction Rate Bonds – Maximum Tender Price $950 per $1,000, plus accrued interest

1996I

$  9,850,000

606072DS2

$50,000

1996J

350,000

606072DT0

$50,000

2004B

1,400,000

606072HK5

$50,000

2004C

19,600,000

606072HL3

$50,000





Taxable Senior Auction Rate Bonds – Maximum Tender Price $950 per $1,000, plus accrued interest

99MM

$10,050,000

606072FP6

$50,000

2001A

29,500,000

606072GD2

$50,000

2001B

3,400,000

606072GE0

$50,000

2001C

10,450,000

606072GF7

$50,000

2001D

7,250,000

606072GG5

$50,000

2001E

10,600,000

606072GH3

$50,000

2001UU

800,000

606072FZ4

$50,000

2001VV

2,000,000

606072GA8

$50,000

2002D

9,000,000

606072GQ3

$100,000

2002E

300,000

606072GR1

$100,000

2002F

2,900,000

606072GS9

$100,000

2002G

28,700,000

606072GT7

$100,000

2002H

200,000

606072GU4

$100,000

2002I

400,000

606072GV2

$100,000

2002J

300,000

606072GW0

$100,000

2002K

1,100,000

606072GX8

$100,000

2002L

6,200,000

606072GY6

$100,000

2003A

6,650,000

606072HC3

$50,000

2003B

300,000

606072HD1

$50,000

2003C

850,000

606072HE9

$50,000

2003D

2,300,000

606072HF6

$50,000

2003E

24,850,000

606072HG4

$50,000

2003F

1,400,000

606072HH2

$50,000

2004D

9,050,000

606072HM1

$50,000

2004E

27,250,000

606072HN9

$50,000

2004F

36,650,000

606072HP4

$50,000

2004G

250,000

606072HQ2

$50,000

2004H

9,350,000

606072HR0

$50,000

2004I

2,200,000

606072HS8

$50,000

2004J

200,000

606072HT6

$50,000





Tax-Exempt Subordinate Auction Rate Bonds – Maximum Tender Price $850 per $1,000, plus accrued interest

1996K

$14,800,000

606072DU7

$50,000

1997S

13,150,000

606072EL6

$50,000

1998X

3,900,000

606072EP7

$50,000

1999LL

21,550,000

606072FN1

$50,000





Taxable Subordinate Auction Rate Bonds – Maximum Tender Price $850 per $1,000, plus accrued interest

2001F

$     200,000

606072GJ9

$50,000

2001XX

50,000

606072GC4

$50,000

2004K

34,100,000

606072HU3

$50,000

2002M

2,600,000

606072GZ3

$100,000

2002N

5,900,000

606072HA7

$100,000


(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 The Higher Education Loan Authority of the State of Missouri