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To: Box-By-The-Riviera™ who wrote (355182)	1/28/2008 8:12:49 AM
From: Giordano Bruno	Respond to of 436258

Apparently its for real Sallie Mae Settles Buyout Case, Refinances Credit Line DOW JONES NEWSWIRES January 28, 2008 7:59 a.m. NEW YORK -- Student lender SLM Corp., better known as Sallie Mae, has settled a bitter feud over a failed $25 billion LBO, in a deal that refinances a $30 billion credit line hanging over the lender and allows private-equity firm J.C. Flowers & Co. to escape without paying a breakup fee. Under the settlement, J.P. Morgan Chase & Co. and Bank of America Corp. have agreed to refinance the credit line along with a consortium of other lenders, according a letter Flowers sent to investors. Both banks took part in the Flowers-led buyout and extended the original credit line after the deal was reached. Sallie Mae executives warned last week that the mounting costs of refinancing the credit line would hurt earnings for 2008. The buyout deal, agreed to in April, fell apart under the pressure of a souring credit market and tougher legislation that hurt margins in Sallie Mae's key federally guaranteed student-loan business. It was the largest deal to fail after a credit crunch ended a record wave of buyouts. The settlement ends further litigation on the matter. Flowers and his investors won't have to pay the $900 million breakup fee for which they potentially had been on the hook. "The Buyer Group is not and will not be obligated to make any payment of any kind to Sallie Mae," Flowers said in the letter to investors. The settlement was reported earlier by the New York Times. Write to Dow Jones Newswires editors at asknewswires@dowjones.com