Sep 17, 2009

Nelnet, Inc. Announces Termination of the Replacement Capital Covenant Benefiting Its 5.125% Senior Notes Due 2010

LINCOLN, Neb., Sept 17, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- Nelnet, Inc. (NYSE: NNI) (the "Company") today announced that its 5.125% Senior Notes due 2010 (CUSIP No. 64031NAA6) (the "Notes"), are no longer covered debt for purposes of the Company's Replacement Capital Covenant dated September 27, 2006 (the "Replacement Capital Covenant"). The Notes do not now qualify as covered debt under the Replacement Capital Covenant because the outstanding principal balance of the Notes is less than $100,000,000. Accordingly, the Replacement Capital Covenant no longer provides any benefit to the holders of the Notes.

In addition, the Company has no other eligible senior debt or eligible subordinated debt under the terms of the Replacement Capital Covenant. As a result, the Replacement Capital Covenant has terminated and the restrictions it placed on the Company's ability to purchase or redeem its 7.400% Fixed-to-Floating Rate Capital Efficient Notes are of no further force and effect.

For more than 30 years, Nelnet has been helping families plan, prepare and pay for their education.

Information contained or incorporated in this press release may be considered forward looking in nature and is subject to various risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Nelnet's operating results, performance or financial condition expressed or implied by the forward-looking statements are the pending and uncertain nature of the reported federal legislation expected to significantly affect student loan programs, the uncertain nature of estimated expenses that may be incurred and cost savings that may result from Nelnet's restructuring plans, changes in terms of student loans and the educational credit marketplace, changes in the demand for educational financing or in financing preferences of educational institutions, students, and their families or changes in the general interest rate environment and in the securitization markets for education loans.

(code #: nnig)

SOURCE Nelnet, Inc.

Copyright (C) 2009 PR Newswire. All rights reserved

View all Press Releases