Multi-Office Steptoe Team Wins $1.5 Billion Closing

This week, a multi-office team of Steptoe attorneys recently closed, on behalf of our client, NextStudent Inc., the issuance and sale of approximately $1.5 billion of auction rate notes.  The notes are secured by a portfolio of federally guaranteed student loans originated under the Family Federal Education Loan Program of the Higher Education Act.  The initial purchasers of the notes were J.P. Morgan Securities Inc., Goldman, Sachs & Co., Morgan Stanley & Co. Incorporated and Banc of America Securities LLC.

Given recent market conditions (including the collapse of the subprime mortgage market) and several highly publicized inquiries involving the student loan industry, our client was extremely pleased that the offering was a success.

Steptoe's structured finance team has represented issuers of billions of dollars of asset backed securities collateralized by traditional mortgage loans, home improvement loans, student loans, insurance premium finance receivables, credit card receivables and mobile home loans.