EXHIBIT 1.1
PRICING AGREEMENT
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XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX INCORPORATED
AS REPRESENTATIVES OF THE SEVERAL
UNDERWRITERS NAMED ON SCHEDULE I HERETO,
X/X XXXXX XXXXXXXXX XXXXXX, XXXXX XXXXX
000 XXXXX XXXXXX, 00XX XXXXX
XXX XXXX, XXX XXXX 00000-0000
March 10, 1998
Ladies and Gentlemen:
SLM Funding Corporation, a Delaware corporation (the "Company"), and
the Student Loan Marketing Association, a corporation formed under the laws of
the United States ("Xxxxxx Xxx"), propose, subject to the terms and conditions
stated herein and in the Underwriting Agreement, dated March 10, 1998 (the
"Underwriting Agreement"), between the Company and Xxxxxx Mae, on the one hand,
and Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated, on the other hand, that
the Company will cause the trust (the "Trust") formed pursuant to the Trust
Agreement dated as of March 1, 1998 between the Company and Chase Manhattan Bank
USA, National Association, as trustee (the "Eligible Lender Trustee"), to issue
and sell to the Underwriters named in Schedule I hereto (the "Underwriters") the
Student Loan-Backed Notes (the "Notes") specified in Schedule II hereto (the
"Designated Securities"). The Notes will be issued and secured pursuant to the
Indenture, dated as of March 1, 1998 (the "Indenture"), between the Trust and
Bankers Trust Company, as trustee (the "Indenture Trustee").
Each of the provisions of the Underwriting Agreement is incorporated
herein by reference in its entirety, and shall be deemed to be a part of this
Agreement to the same extent as if such provisions had been set forth in full
herein; and each of the representations and warranties set forth therein shall
be deemed to have been made at and as of the date of this Pricing Agreement,
except that each representation and warranty which refers to the Prospectus in
Section 2 of the Underwriting Agreement shall be deemed to be a representation
or warranty as of the date of the Underwriting Agreement in relation to the
Prospectus (as therein defined), and also a representation and warranty as of
the date of this Pricing Agreement in relation to the Prospectus as amended or
supplemented relating to the Designated Securities which are the subject of this
Pricing Agreement. Each reference to the Representatives herein and in the
provisions of the Underwriting Agreement so incorporated by reference shall be
deemed to refer to you. Unless otherwise defined herein, terms defined in the
Underwriting Agreement are used herein as therein defined.
The Representatives designated to act on behalf of the Representatives
and on behalf of each of the Underwriters of the Designated Securities pursuant
to Section 12 of the Underwriting Agreement and the address of the
Representatives referred to in such Section 12 are set forth at the end of
Schedule II hereto.
An amendment to the Registration Statement, or a supplement to the
Prospectus, as the case may be, relating to the Designated Securities, in the
form heretofore delivered to you is now proposed to be filed with the
Commission.
Subject to the terms and conditions set forth herein and in the
Underwriting Agreement incorporated herein by reference, the Company agrees to
cause the Trust to issue and sell to each of the Underwriters, and each of the
Underwriters agrees, severally and not jointly, to purchase from the Trust, at
the time and place and at the purchase price to the Underwriters set forth in
Schedule II hereto, the principal amount of Designated Securities set forth
opposite the name of such Underwriter in Schedule I hereto, less the principal
amount of Designated Securities covered by Delayed Delivery Contracts, if any,
as may be specified in Schedule II.
During the period beginning from the date of this Pricing Agreement
for the Designated Securities and continuing to and including March 19, 1998,
the Company agrees, and Xxxxxx Xxx agrees that it will cause the Company, not
to, and not to permit any affiliated entity to, offer, sell, contract to sell or
otherwise dispose of, any securities (other than the Designated Securities)
collateralized by, or any securities (other than the related Certificates)
evidencing an ownership in, Student Loans, without the prior written consent of
the Representatives.
Each Underwriter represents and agrees that (a) it has not offered or
sold and will not offer or sell any Notes or Certificates to persons in the
United Kingdom prior to the expiration of the period of six months from the
issue date of the Notes and the Certificates except to persons whose ordinary
activities involve them in acquiring, holding, managing or disposing of
investments (as principal or agent) for the purposes of their businesses or
otherwise in circumstances which have not resulted and will not result in an
offer to the public in the United Kingdom within the meaning of the Public
Offers of Securities Regulations 1995; (b) it has complied and will comply with
all applicable provisions of the Financial Services Xxx 0000 with respect to
anything done by it in relation to the Notes and the Certificates in, from or
otherwise involving the United Kingdom; and (c) it has only issued or passed on
and will only issue or pass on in the United Kingdom any document received by it
in connection with the issuance of the Notes and the Certificates to a person
who is of a kind described in article 11(3) of the Financial Services Xxx 0000
(Investment Advertisements) (Exemptions) Order 1995 or is a person to whom such
document may otherwise lawfully be issued or passed on.
If the foregoing is in accordance with your understanding, please sign
and return to us 10 counterparts hereof, and upon acceptance hereof by you, on
behalf of each of
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the Underwriters, this letter and such acceptance hereof, including the
provisions of the Underwriting Agreement incorporated herein by reference, shall
constitute a binding agreement between each of the Underwriters and the Company
and Xxxxxx Mae. It is understood that your acceptance of this letter on behalf
of each of the Underwriters is or will be pursuant to the authority set forth in
a form of Agreement among Underwriters, the form of which shall be submitted to
the Company and Xxxxxx Xxx for examination upon request, but without warranty on
the part of the Representatives as to the authority of the signers thereof.
Very truly yours,
SLM FUNDING CORPORATION
By: /s/ XXXXXXX M.E. XXXXXX, JR.
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Name: Xxxxxxx M.E. Xxxxxx, Jr.
Title: Treasurer and Controller
STUDENT LOAN MARKETING ASSOCIATION
By: /s/ XXXXXX XXXXXXXXXX
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Name: Xxxxxx Xxxxxxxxxx
Title: Treasurer
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Accepted as of the date hereof:
XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX INCORPORATED
By: /s/ XXXXXXXX X. XXXX
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Name: Xxxxxxxx X. Xxxx
Title: Managing Director
On behalf of each of the Underwriters
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SCHEDULE I
PRINCIPAL AMOUNT OF DESIGNATED SECURITIES TO BE PURCHASED
UNDERWRITER CLASS A-1 CLASS A-2
Xxxxxxx Lynch, Pierce, Xxxxxx & $ 493,850,000 $ 412,500,000
Xxxxx Incorporated
Deutsche Xxxxxx Xxxxxxxx Inc. $ 243,850,000 $ 162,400,000
Education Securities, Inc. $ 243,850,000 $ 162,400,000
Xxxxxxx, Sachs & Co. $ 243,850,000 $ 162,400,000
X.X. Xxxxxx Securities Inc. $ 243,850,000 $ 162,400,000
Xxxxxx Xxxxxxx & Co. Incorporated $ 243,850,000 $ 162,400,000
TOTAL $1,713,100,000 $1,224,500,000
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SCHEDULE II
TITLE OF EACH CLASS OF DESIGNATED SECURITIES:
Floating Rate Class A-1 Student Loan-Backed Notes
(for purposes of this Schedule II, "Class A-1")
Floating Rate Class A-2 Student Loan-Backed Notes
(for purposes of this Schedule II, "Class A-2")
AGGREGATE PRINCIPAL AMOUNT OF EACH CLASS:
Class A-1: $1,713,100,000
Class A-2: $1,224,500,000
PRICE TO PUBLIC OF EACH CLASS:
Class A-1: 100.00%
Class A-2: 100.00%
PURCHASE PRICE BY UNDERWRITERS OF EACH CLASS:
Class A-1: 99.775%
Class A-2: 99.725%
SPECIFIED FUNDS FOR PAYMENT OF PURCHASE PRICE: Same Day Funds
INDENTURE: Indenture, dated as of March 1, 1998, among Bankers Trust
Company, as Indenture Trustee, the SLM Student Loan Trust 1998-1, and Chase
Manhattan Bank USA, National Association, as Eligible Lender Trustee.
MATURITY:
Class A-1: January 2007 Distribution Date
Class A-2: October 2011 Distribution Date
INTEREST RATE:
Class A-1: T-Xxxx Rate plus 0.71%
Class A-2: T-Xxxx Rate plus 0.76%
FORM OF DESIGNATED SECURITIES: Book-Entry (DTC)
TIME OF DELIVERY: March 19, 1998
CLOSING LOCATION FOR DELIVERY OF DESIGNATED SECURITIES:
Student Loan Marketing Association
00000 Xxxxxx Xxx Xxxxx
Xxxxxx, XX 00000
NAMES AND ADDRESSES OF REPRESENTATIVES:
Designated Representatives: Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
Address for Notices, etc.: Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
World Financial Center, North Tower
000 Xxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000-0000
Attn: Xxxxxxx Xxxxxxxxx
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