First Marblehead and SunTrust Extend Contract Until 2017
June 02 2014 - 9:00AM
Marketwired
First Marblehead and SunTrust Extend Contract Until 2017
BOSTON, MA--(Marketwired - Jun 2, 2014) - The First Marblehead
Corporation (NYSE: FMD) today announced that it has entered into an
amendment to its loan program agreement with SunTrust
Bank. The amendment extends the term of the loan program
agreement through September 30, 2017 while reducing the Company's
funding requirements for credit enhancement on both a historical
and prospective basis to approximately 50% of the amount required
before the amendment was executed. The reduction in the level
of credit enhancement will also lower the amount of administrative
fee income to be received by the Company.
"This contract extension is indicative of the deepening
relationship between First Marblehead and SunTrust Bank," said
Daniel Meyers, Chairman and Chief Executive Officer. "We
believe that the credit enhancement change makes sense for both
organizations as a result of the strong overall credit performance
of the private education loan portfolios being originated by
SunTrust Bank," added Mr. Meyers.
The Company has filed a current report on Form 8-K with the
Securities and Exchange Commission providing additional information
relating to the terms and conditions of the amendment. We
refer you to the filing, which can be accessed through our website,
www.firstmarblehead.com.
About The First Marblehead Corporation First Marblehead helps
meet the need for education financing by offering national and
regional financial institutions and educational institutions the
Monogram® platform, an integrated suite of design, implementation
and credit risk management services for private label, customizable
private education loan programs. For more information, please see
www.firstmarblehead.com. First Marblehead supports responsible
lending and is a strong proponent of the smart borrowing principle,
which encourages students to access scholarships, grants and
federally-guaranteed loans before considering private education
loans; please see www.SmartBorrowing.org. Through its subsidiary,
Union Federal Savings Bank, First Marblehead offers private
education loans, residential and commercial mortgage loans and
retail savings, money market and time deposit products. For more
information, please see www.unionfsb.com. First Marblehead also
offers outsourced tuition planning, billing, payment technology
services and refund management services through its subsidiary
Tuition Management Systems LLC. For more information, please see
www.afford.com. Through its subsidiary, Cology LLC, First
Marblehead offers private education loan processing and
disbursement services as well as life-of-loan servicing for
lenders. For more information, please see www2.cology.com.
Statements in this press release regarding First Marblehead's
future financial and operating results, the loan program among
First Marblehead and SunTrust Bank (the "Loan Program"), including
the amended loan program agreement, provision of future services by
First Marblehead and the benefits of the parties' expanded
relationship, as well as any other statements that are not purely
historical, constitute forward-looking statements for purposes of
the safe harbor provisions of The Private Securities Litigation
Reform Act of 1995. These forward-looking statements are based upon
our historical performance and on our plans, estimates and
expectations as of June 2, 2014. The inclusion of this
forward-looking information should not be regarded as a
representation by us or any other person that the future results,
plans, estimates, intentions or expectations expressed or implied
by us will be achieved. You are cautioned that matters subject to
forward-looking statements involve known and unknown risks and
uncertainties, including economic, legislative, regulatory,
competitive and other factors, which may cause our actual financial
or operating results, including facilitated loan volumes, loan
portfolio performance or revenues related to the Loan Program, or
the timing of events, to be materially different than those
expressed or implied by forward-looking statements. Important
factors that could cause or contribute to such differences include:
the successful sales and marketing of loan offerings pursuant to
the Loan Program, including the volume of loan applications and the
extent to which loan applications ultimately result in disbursed
loans; the volume, timing and performance of disbursed loans;
demand for private education financing generally; competition for
providing private education financing; our success in delivering
our various services to SunTrust Bank; other business effects,
including the effects of industry, economic or political conditions
outside of First Marblehead's or SunTrust Bank's control, and the
other factors set forth under the caption "Part II - Item 1A. Risk
Factors" in First Marblehead's quarterly report on Form 10-Q filed
with the Securities and Exchange Commission on May 8, 2014. We
specifically disclaim any obligation to update any forward-looking
statements as a result of developments occurring after the date of
this press release, and you should not rely on those statements as
representing our views as of any date subsequent to the date of
this press release.
Contact: Ray Morel Managing Director The First Marblehead
Corporation 800 Boylston Street, 34th FL Boston, MA 02199
617.638.2065
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