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Company Separation Plan on Track to Complete in Second Quarter 2014
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 customers.”
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.