WILMINGTON, DE — Navient (Nasdaq: NAVI) announced that it plans to transition outstanding U.S. Dollar (USD) LIBOR-indexed Navient-issued instruments to Secured Overnight Financing Rate (SOFR) after June 30, 2023. USD LIBOR will stop being published after June 30, 2023 and will be replaced by SOFR in many financial contracts.
Navient and certain of its affiliates/subsidiaries have issued private education loans and asset-backed securities that are indexed to USD LIBOR. Starting in July, the relevant LIBOR rate included in impacted LIBOR contracts will be replaced with the applicable SOFR rate and tenor spread adjustment provided for in the Adjustable Interest Rate (LIBOR) Act of 2022 and the Federal Reserve Board’s final rule issued pursuant to the LIBOR Act.
In addition, Navient has notified holders of impacted asset-backed securities. Information for investors can be found at Navient.com/ABS.