WASHINGTON - The Brazos Higher Education Service Corp., one of the largest nonprofit student loan lenders in the country, may be the first to ask its institutional investors to voluntarily tender, at less than par, roughly $6 billion of outstanding taxable student-loan related auction-rate securities so that it can restructure them as term floating-rate notes.

In a three-page notice distributed late last week through Citigroup Global Markets, the Waco, Tex.-based student loan lender announced that it would offer to buy back the outstanding ARS, most of which are illiquid, that were sold under 13 different indentures going back to 1993. In all, the buyback encompasses 130 Cusips and the bulk of the $7.5 billion of outstanding ARS that was sold on behalf of Brazos.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.