LINCOLN, Neb., June 24 /PRNewswire-FirstCall/ -- Nelnet, Inc. (NYSE: NNI) (the 'Company') announced today that it has commenced a cash tender offer (the 'Offer') for up to $105,000,000 aggregate principal amount of its outstanding 5.125% Senior Notes due 2010 (CUSIP No. 64031NAA6) ('Notes'). The total consideration offered for Notes purchased in the Offer will be in the range of $920 to $1,000 per $1,000 principal amount of Notes, including the Early Tender Payment (as defined below) of $30 per $1,000 principal amount of Notes payable only to holders validly tendering and not validly withdrawing their Notes prior to the Early Tender Time (as defined below).
Notes validly tendered and not validly withdrawn will be accepted for payment pursuant to, and at a price determined by, an auction process.
Under the auction procedure, the Company will select the single lowest price per $1,000 principal amount of Notes (the 'Tender Offer Consideration') to enable the Company to purchase up to $105,000,000 aggregate principal amount of the Notes (or, if less than $105,000,000 aggregate principal amount of the Notes are validly tendered (and not validly withdrawn), all Notes so tendered). Under the Offer, the Company will pay the same Tender Offer Consideration for all Notes accepted for purchase that were validly tendered at or below the clearing price and not validly withdrawn, upon the terms and subject to the conditions of the Offer, including the proration terms thereof. Registered holders of the Notes ('Holders') desiring to tender their Notes must specify the price at which such Holders are willing to sell their Notes to the Company, which price may not be less than $890 or greater than $970 per $1,000 principal amount of Notes (such price to be expressed in dollars in increments of $10 in such range).
In addition, the Company is offering to pay, in respect of Notes accepted for purchase pursuant to the Offer that were validly tendered and not validly withdrawn prior to midnight, New York City time, on Wednesday, July 8, 2009 (the 'Early Tender Time'), a premium of $30 per $1,000 principal amount of Notes (the 'Early Tender Payment'). The total consideration that the Company may pay is the sum of the Tender Offer Consideration and the Early Tender Payment (the 'Total Consideration').
