NEWARK, Del.--(BUSINESS WIRE)--Navient will be the name of the new loan management, servicing and asset
recovery company to be launched by Sallie Mae.
The name selection is another step toward the successful completion of
Sallie Mae’s plan to separate later this spring into two, publicly
traded entities: a consumer banking business and the newly named loan
management, servicing and asset recovery business.
Upon completion of the transaction, Navient is expected to service
nearly $300 billion in student loans, providing customer support to
assist 12 million customers in successfully paying their education
loans. The newly named Navient will continue its strong track record of
results: its federal loan customers default at a rate 30 percent better
than the national average. Navient also will continue to perform asset
recovery for government, higher education and business clients, as well
as manage a portfolio of FFELP and private loans.
John (Jack) F. Remondi, president and CEO of Sallie Mae, announced the
name and logo to employees this morning.
“Helping our customers navigate the path to financial success is
everything we stand for,” said Remondi, who will serve as the new
company’s CEO. “Our new name — Navient — symbolizes the expertise,
experience, and dedication we consistently deliver for our clients and
With more than 6,000 employees and more than $2 billion in revenue,
Navient will trade on the NASDAQ stock exchange under the ticker symbol
NAVI. Navient corporate headquarters will be located in the Wilmington,
Del., area, with centers in Fishers, Indianapolis, and Muncie, Ind.;
Newark, Del.; Newton, Mass.; Reston, Va.; Washington, D.C.; and
Wilkes-Barre, Pa. The company’s asset recovery subsidiaries Pioneer
Credit Recovery and General Revenue Corporation operate in Arcade, Perry
and Horseheads, N.Y.; Lake City, Fla.; Mason, Ohio; and Moorestown, N.J.
After the separation, the company’s consumer banking business will
retain the Sallie Mae name and will continue to trade on the NASDAQ
stock exchange under the ticker symbol SLM. Sallie Mae will continue to
help families save, plan and pay for college through responsible private
education loan, insurance and savings products.
Customers with student loans serviced by Sallie Mae will continue to
conduct business as they do today, with no changes until the fall of
2014. This spring and summer, they will receive personalized information
about their account and any changes needed to ensure a smooth transition.
This press release contains statements that constitute “forward-looking
statements” within the meaning of the Securities Act of 1933 and the
Securities Exchange Act of 1934 as amended by the Private Securities
Litigation Reform Act of 1995. These forward-looking statements include,
among others, statements about the expected revenues of Navient and the
separation of Sallie Mae into two separately traded companies. These
forward-looking statements may be identified by the use of words such as
“expect,” “anticipate,” “believe,” “estimate,” “potential,” “should” or
similar words intended to identify information that is not historical in
nature. These statements are based on the current beliefs and
expectations of Sallie Mae's management, as applicable, and are subject
to known and unknown risks and uncertainties. There are a number of
risks and uncertainties that could cause actual results to differ
materially from those contemplated by the forward-looking statements,
including, but not limited to Navient being unable to achieve expected
operating results and successfully obtain all consents necessary to
effectuate the spin-off of Navient from the Sallie Mae consumer banking
business; the separation of the companies may be more difficult,
time-consuming or costly than expected; revenues following the
transaction may be lower than expected; operating costs, customer loss
and business disruption (including, without limitation, difficulties in
maintaining relationships with employees, customers, clients or
suppliers) may be greater than expected following the separation; the
retention of certain key employees in each of the separate companies;
the outcome of any legal proceedings that may be instituted against the
parties and others related to the separation or transition agreements
between the parties and the amount of the costs, fees, expenses and
charges related to the spin-off and separation of the companies. For
further information regarding the risks associated with Salle Mae’s
businesses and the spin-off of Navient, please refer to the respective
filings with the Securities and Exchange Commission, including Annual
Reports on Form 10-K for the most recently ended year, Quarterly Reports
on Form 10-Q and Current Reports on Form 8-K. The parties believe these
forward-looking statements are reasonable; however, undue reliance
should not be placed on any forward-looking statements, which are based
on current expectations. Neither Sallie Mae nor Navient assumes any
obligation to update any forward-looking statements as a result of new
information, future developments or otherwise.
Sallie Mae (NASDAQ: SLM) is the nation’s No. 1 financial services
company specializing in education. Whether college is a long way off or
just around the corner, Sallie Mae turns education dreams into reality
for American families, today serving 25 million customers. With products
and services that include Upromise rewards, scholarship search and
planning tools, education loans, insurance, and online banking, Sallie
Mae offers solutions that help families save, plan, and pay for college.
Sallie Mae also provides financial services to hundreds of college
campuses as well as to federal and state governments. Learn more at SallieMae.com.
Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are
not sponsored by or agencies of the United States of America.
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