Sallie Mae (NASDAQ: SLM) has announced an accelerated share repurchase (ASR) agreement with Goldman Sachs & Co. LLC for $200 million. This agreement is part of a $500 million share repurchase program authorized by Sallie Mae's board of directors, effective since January 22, 2026.
According to Jon Witter, the CEO of Sallie Mae, the company has already repurchased nearly $300 million in shares this quarter, reflecting their disciplined approach to capital allocation and belief in the strength of their franchise. The company aims to exhaust most, if not all, of its current $500 million authorization for share repurchases in 2026.
The prefunding of the $200 million ASR with Goldman Sachs is expected to occur on March 10, 2026. The final number of shares to be repurchased will be based on the volume-weighted average price of the company’s common stock during the term of the ASR agreement, less a discount and subject to customary adjustments. The completion of the transactions under the ASR agreement is anticipated before the end of the second quarter of 2026.
The announcement of this ASR agreement comes after a dynamic repurchase plan was fully executed following the company's fourth-quarter earnings announcement. The company remains committed to evaluating other options to generate capital for share repurchases during the current market dislocation.
Sallie Mae will file a Form 8-K with the U.S. Securities and Exchange Commission for additional information regarding this announcement. The market has reacted to these announcements by moving the company's shares -0.52% to a price of $26.85. For the full picture, make sure to review SLM Corp's 8-K report.
