SALLIE MAE ANNOUNCES FOURTH QUARTER DIVIDENDS, INCREASE IN COMMON SHARE REPURCHASE AUTHORITY
SALLIE MAE ANNOUNCES FOURTH QUARTER DIVIDENDS,
INCREASE IN COMMON SHARE REPURCHASE AUTHORITY
WASHINGTON, Nov. 22 /PRNewswire/ -- The Student Loan Marketing Association (Sallie Mae) (NYSE: SLM) today announced a fourth quarter 1991 dividend on its voting and non-voting common stock of 25 cents per share, a 25 percent increase from the 20 cents per share paid in each of the previous four quarters. The dividend will paid on Dec. 20, 1991, to shareholders of record on Dec. 6, 1991.
The corporation also announced that its board of directors has increased management's authority to repurchase its voting and non-voting common shares to 4 million shares, of which up to 0.8 million may be voting common shares.
The fourth quarter dividend on the common stock brings 1991 dividends to 85 cents per share, a 44 percent increase from the 1990 level.
Announcing the dividend and repurchase authority increases, Sallie Mae Chief Executive Officer and President Lawrence A. Hough said: "The dividend increase and share repurchase program are designed to provide a consistent, attractive total return to our shareholders. Today's actions enable us to improve the current cash return on the shares and enhance future share price appreciation while reinvesting our retained earnings in student loan growth and the maintenance of strong capital ratios."
The corporation also declared a fourth quarter 1991 dividend of 5.00 percent, or 62.50 cents per share, on its adjustable rate cumulative preferred stock. That dividend rate is tied to yields on certain U.S. Treasury obligations, but is never less than 5.00 percent nor more than 14.00 percent per annum. The dividend on the preferred stock will be paid on Dec. 30, 1991, to shareholders of record on Dec. 16, 1991.
At Sept. 30, 1991, Sallie Mae's 93.2 million common shares issued and outstanding were comprised of 10.9 million shares of voting common stock and 82.3 million non-voting common shares. The non-voting common stock is traded (SLM) on the New York Stock Exchange; the voting common stock, of which ownership is restricted to certain financial and educational institutions is traded (SLMAJ) on the NASDAQ National Market System. The preferred stock, of which 4.3 million shares were outstanding at Sept. 30, 1991, trades on the NYSE.
Sallie Mae is the major financial intermediary serving the education credit market. By buying insured student and parent loans and providing other financial services to financial and educational institutions, Sallie Mae replenishes local supplies of education credit. The corporation owns about 30 percent of all guaranteed education loans outstanding today.
/CONTACT: Gisela Vallandigham, 202-298-3147, or Ross Kleinman, 202-298-3013, both of Sallie Mae/
(SLM) CO: Sallie Mae ST: District of Columbia IN: FIN SU: DIV TW -- DC008 -- 6330 11/22/91 11:15 EST