Sallie Mae Launches $200M Accelerated Buyback Under $500M Program
Sallie Mae has prefunded a $200 million accelerated share repurchase with Goldman Sachs, part of its $500 million buyback program authorized through February 2028, aiming to retire shares before the end of Q2 2026. The firm held $4.5 billion in cash against $498 million short-term and $5.7 billion long-term debt at December 31, 2025, and repurchased $91 million in stock so far this year.
1. Details of Accelerated Share Repurchase
Sallie Mae entered a $200 million accelerated share repurchase agreement with Goldman Sachs, prefunding the transaction to enable immediate share retirement. The final share count will depend on the stock’s average trading price during the ASR period, with settlement expected before the end of Q2 2026.
2. Capital Allocation and Financial Position
This ASR is part of a broader $500 million repurchase program authorized January 22, 2026, which runs through February 2028. The company had repurchased $91 million of common stock in 2026 and held $4.5 billion in cash against $498 million in short-term and $5.7 billion in long-term debt as of December 31, 2025, while maintaining a quarterly dividend of $0.13 per share.
3. Stock Performance Trends
Sallie Mae’s shares have declined 31.1% over the past six months, significantly underperforming the industry’s 14.8% drop, reflecting market concerns over loan portfolio growth and interest rate exposure.