Illinois Student Assistance Commission Announces Tender Offer
CHICAGO, Sept. 24 /PRNewswire/ -- Illinois Student Assistance Commission ("ISAC"), today announced that it has commenced a tender offer with respect to the following outstanding Taxable Student Loan Revenue Bonds of ISAC:
Auction Rate Bonds |
||||
Taxable Student Loan Revenue Bonds |
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Series |
Initial Principal Amount |
Outstanding Principal Amount (July 31, 2010) |
CUSIP(1) |
|
Senior Series: |
||||
Senior Series 2002 I-3 |
$70,000,000 |
$69,850,000 |
452281GS1 |
|
Senior Series 2003 IV-1 |
$88,150,000 |
$88,150,000 |
452281HC5 |
|
Senior Series 2003 IV-3 |
$88,200,000 |
$21,400,000 |
452281HE1 |
|
Senior Series 2004 VI-3 |
$75,000,000 |
$75,000,000 |
452281HJ0 |
|
Senior Series 2005 VIII-1 |
$70,000,000 |
$70,000,000 |
452281HQ4 |
|
Senior Series 2005 VIII-2 |
$70,000,000 |
$70,000,000 |
452281HR2 |
|
Senior Series 2005 VIII-3 |
$80,000,000 |
$80,000,000 |
452281HS0 |
|
Senior Series 2005 VIII-4 |
$50,000,000 |
$50,000,000 |
452281HT8 |
|
Senior Series 2005 VIII-5 |
$60,000,000 |
$60,000,000 |
452281HU5 |
|
Senior Series 2005 VIII-6 |
$70,000,000 |
$70,000,000 |
452281HV3 |
|
Senior Series 2005 VIII-7 |
$80,000,000 |
$80,000,000 |
452281HW1 |
|
Senior Series 2005 VIII-8 |
$80,000,000 |
$80,000,000 |
452281HX9 |
|
Subordinate Series: |
||||
Subordinate Series 2002 II |
$40,000,000 |
$30,000,000 |
452281GT9 |
|
Subordinate Series 2005 IX-1 |
$20,000,000 |
$20,000,000 |
452281HY7 |
|
Subordinate Series 2005 IX-2 |
$20,000,000 |
$20,000,000 |
452281HZ4 |
|
The tender offer is part of a plan by ISAC to refinance student loans securing its auction rate bonds. The tender offer will expire at 5:00 p.m. New York City time, on October 7, 2010, unless extended or earlier terminated by ISAC. ISAC's obligation to purchase auction rate bonds in the tender offer is subject to the terms and conditions set forth in the offer to purchase dated September 24, 2010 (the "Offer to Purchase"). The Offer to Purchase can be obtained by contacting the depositary described below.
Each bondholder that validly tenders its auction rate bonds before the expiration of the tender offer will receive $920.00000 (92.00000% of the par value) for each $1,000.00 of principal amount of senior series auction rate bonds validly tendered and accepted for purchase and $844.8680 (84.48680% of the par value) for each $1,000.00 of principal amount of subordinate series auction rate bonds validly tendered and accepted for purchase, in each case plus accrued and unpaid interest from the last applicable interest payment date to, but not including, the settlement date, which is expected to be on or before October 28, 2010. The purchase price described in the foregoing sentence does not include accrued carry-over amounts on the auction rate bonds or accrued interest on carry-over amounts on the auction rate bonds. Each bondholder that validly tenders its auction rate bonds pursuant to the tender offer will waive any and all rights to receive any carry-over amounts and any interest on carry-over amounts with respect to the auction rate bonds accepted for purchase pursuant to the tender offer.
None of ISAC, the State of Illinois, the depositary, the dealer manager, the trustee or any of their respective affiliates makes any recommendation as to whether bondholders should tender their auction rate bonds pursuant to the tender offer. Each bondholder must make its own decision with regard to tendering its auction rate bonds pursuant to the tender offer.
Morgan Stanley & Co. Incorporated will act as the dealer manager for the tender offer.
Morgan Stanley & Co. Incorporated |
|
1585 Broadway, 2nd Floor |
|
New York, NY 10036 |
|
Phone: (212) 761-0925 |
|
Attn: ISAC Tender Offer |
|
D.F. King & Co., Inc. will act as the information agent and depositary for the tender offer. Bondholders or their representatives may request copies of the Offer to Purchase and 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 10015 |
|
Bankers and Brokers Call: (212) 269-5550 |
|
All Others Call Toll Free: (800) 859-8509 |
|
This press release is not an offer to purchase, a solicitation of an offer to purchase or a solicitation of an offer to sell any of the auction rate bonds. The tender offer may only be made 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 tender offer.
About Illinois Student Assistance Commission
ISAC was created in 1957 under the name "State Scholarship Commission of the State of Illinois" ("ISSC") and exists under and by virtue of the Student Assistance Act. Legislation effective as of August 13, 1989 changed the name of ISSC to the Illinois Student Assistance Commission. ISAC is governed by a Governor-appointed body of ten persons and is responsible for the administration of a number of State-authorized financial aid programs for post-secondary students in Illinois. The Student Assistance Act provides that the term of any commissioner of ISAC (other than the bi-annually appointed student commissioner) continues beyond the expiration until such commissioner is reappointed or a successor is appointed and qualified. As of the date of this Press Release, three commissioner positions are currently vacant. The programs which ISAC administers include: (1) the Illinois Designated Account Purchase Program ("IDAPP"), which provides a secondary market for educational loans made by eligible lenders under the Student Assistance Act and the Higher Education Act and provides for the origination of educational loans, and (2) the Illinois Guaranteed Loan Program, which guarantees educational loans eligible for reinsurance pursuant to the Higher Education Act held by IDAPP or by other eligible lenders. ISAC also administers the Monetary Award Program, which provides financial assistance through direct grants to students in financial need, the College Illinois!® 529 Prepaid Tuition Program, and a number of other scholarship and grant programs. ISAC produces a variety of materials on financial planning for higher education and on debt counseling.
Illinois Student Assistance Commission Contact
John Sinsheimer, Chief Financial Officer: (312) 814-7279
Forward-Looking Statements
Forward-looking statements in this press release, such as the scheduled expiration of the tender 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, ISAC.
(1) CUSIP is a registered trademark of American Bankers Association. None of ISAC, the State of Illinois, the Dealer Manager or the Depositary 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 Illinois Student Assistance Commission
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