The First Marblehead Corporation : First Marblehead Expands Relationship With SunTrust Bank, Increasing Volume Capacity and Extending Term to 2015
11/15/2011| 09:40am US/Eastern
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BOSTON, MA -- (MARKET WIRE) -- 11/15/11 -- The First
Marblehead Corporation (NYSE: FMD) today announced it has
entered into an amendment to its loan program agreement with
SunTrust Bank. The new agreement extends the relationship to
2015 and substantially increases volume capacity for
Monogram-based private loan originations.
Pursuant to the new agreement, First Marblehead will perform
all of the services to support this enhanced partnership,
including loan program design, sales, marketing coordination,
loan processing, portfolio management and portfolio
administration services. SunTrust Bank will serve as the
lender. By the end of the third quarter of fiscal 2012, all
new SunTrust private education lending activity will occur
through First Marblehead.
Daniel Meyers, the Company's Chief Executive Officer and
President, said, "We are very excited about this new
agreement with SunTrust. We have been working with SunTrust
for over a year and by directing all of their private student
loan volume through our Monogram® platform, we believe both
entities will benefit substantially."
Mark Smith, SunTrust's Executive Vice President for
Specialty Lending, said, "We believe this enhanced
partnership with First Marblehead will help us achieve our
core objective of providing well-structured products to helps
schools and families better handle the rising cost of
college. We look forward to working with First Marblehead
over the coming years to ensure we jointly grow our private
loan business."
The Company has filed a current report on Form 8-K with the
Securities and Exchange Commission providing additional
information relating to the terms and conditions of the
amendment. We refer you to the filing, which can be accessed
through our website, www.firstmarblehead.com.
About The First Marblehead Corporation - First
Marblehead helps meet the need for education financing by
offering national and regional financial institutions and
educational institutions the Monogram® platform, an
integrated suite of design, implementation and credit risk
management services for private label, customizable private
education loan programs. For more information, go to www.firstmarblehead.com.
First Marblehead supports responsible lending and is a strong
proponent of the smart borrowing principle, which encourages
students to access scholarships, grants and
federally-guaranteed loans before considering private
education loans; please see www.SmartBorrowing.org.
First Marblehead also offers outsourced tuition planning,
billing and payment technology services through its
subsidiary Tuition Management Systems LLC. For more
information, go to
www.afford.com.
Statements in this press release regarding the loan program
among First Marblehead and SunTrust Bank (the "Loan
Program"), including the amended loan program agreement,
provision of future services by First Marblehead and the
benefits of the parties' expanded relationship, as well
as any other statements that are not purely historical,
constitute forward-looking statements for purposes of the
safe harbor provisions of The Private Securities Litigation
Reform Act of 1995. These forward-looking statements are
based upon our historical performance and on our plans,
estimates and expectations as of November 15, 2011. The
inclusion of this forward-looking information should not be
regarded as a representation by us or any other person that
the future results, plans, estimates, intentions or
expectations expressed or implied by us will be achieved. You
are cautioned that matters subject to forward-looking
statements involve known and unknown risks and uncertainties,
including economic, legislative, regulatory, competitive and
other factors, which may cause our actual financial or
operating results, including facilitated loan volumes, loan
portfolio performance or revenues related to the Loan
Program, or the timing of events, to be materially different
than those expressed or implied by forward-looking
statements. Important factors that could cause or contribute
to such differences include: the successful sales and
marketing of loan offerings pursuant to the Loan Program,
including the volume of loan applications and the extent to
which loan applications ultimately result in booked loans;
the volume, timing and performance of booked loans; demand
for private education financing generally; competition for
providing private education financing; our success in
delivering our various services to SunTrust Bank; and the
other factors set forth under the caption "Part II -
Item 1A. Risk Factors" in First Marblehead's
quarterly report on Form 10-Q filed with the Securities and
Exchange Commission on November 8, 2011. We specifically
disclaim any obligation to update any forward-looking
statements as a result of developments occurring after the
date of this press release, and you should not rely on those
statements as representing our views as of any date
subsequent to the date of this press release.
Contact:
Gary Santo
Investor Relations
First Marblehead
800 Boylston Street, 34th FL
Boston, MA 02199
617.638.2065
Source: The First Marblehead Corporation
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