South Texas Higher Education Authority, Inc. Accepts Tendered Student Loan Auction Rate Bonds

EDINBURG, Texas, Dec. 30, 2011 /PRNewswire/ -- South Texas Higher Education Authority, Inc., a non-profit corporation organized under the laws of the State of Texas (the "Authority") today announced that it has accepted those Student Loan Auction Rate Bonds tendered to it for purchase pursuant to its offer (the "Offer") to purchase for cash consideration certain Auction Rate Bonds, upon the terms and subject to the conditions set forth in the Offer to Purchase dated December 1, 2011 (the "Offer to Purchase"), including the Funding Condition described therein.  The accepted Student Loan Auction Rate Bonds (the "Accepted Bonds") consist of $173,500,000 or 62.44% in principal amount of  the outstanding Senior Class Student Loan Revenue Bonds issued pursuant to the Indenture of Trust dated as of March 1, 2007, as amended and supplemented to date, between the Authority and Wells Fargo Bank, National Association, as trustee. 

The Authority's obligation to purchase Accepted Bonds pursuant to the Offer to Purchase is subject to the satisfaction or waiver of the terms and conditions set forth in the Offer to Purchase, including the Funding Condition described therein.  The Settlement Date in respect of the Accepted Bonds will be on or about January 26, 2012; however, the Authority has the right in its sole discretion to extend the Settlement Date by 15 days from the original stated date in order to satisfy the conditions in the Offer to Purchase.

The Accepted Bonds to be purchased, if less than all Accepted Bonds are purchased, will be selected as described in the Offer to Purchase.  The Authority will promptly return any Accepted Bonds that are not to be purchased by the Authority pursuant to the Offer. 

D.F. King & Co., Inc. acts 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.

D.F. King & Co., Inc.
48 Wall Street, 22^nd Floor
New York, New York 10005

By Facsimile Transmission:
(Eligible Institutions Only)
(212) 493-6996
Banks and Brokers Call:  (212) 269-5550
All Others Call Toll Free:  (800) 431-9643

Email:  [email protected]
Website: www.dfking.com/southtexas

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 Student Loan Auction Rate Bonds. 

About South Texas Higher Education Authority, Inc.

The Authority is a non-profit corporation which was incorporated in 1973 at the request of the City of Edinburg, Texas for the purpose of providing funds for the acquisition and servicing of federally guaranteed student loans. Under the guidance and vision of the late Lloyd M. Bentsen, Jr., former U.S. Secretary of the Treasury and U.S. Senator, the Authority was conceived with a vision to serve the South Texas community with the belief that equal access to education is the key to economic progress for all. Over 30 years later, the board of directors of the Authority remains as committed to this vision as when it was first established.

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.

SOURCE South Texas Higher Education Authority, Inc.