© 2014 The Texas Lawbook.
By Natalie Posgate
Staff Writer for The Texas Lawbook
(May 5) – Baker Botts announced Monday that it advised Newark, Del.-based Sallie Mae in the May 1 closing of its strategic separation from its loan management, servicing and asset recovery company, Navient.
At the time of the spin-off, Navient had a market capitalization of $7.1 billion.
Sallie Mae, formally SLM Corporation, is now a standalone consumer banking business. The company now manages a $6.5 billion portfolio of high-quality, private education loans.
New York partner Bob Murray and Palo Alto Partner John Martin led the Baker Botts team in the transaction. Martin, who is the chair of Baker Botts’ technology sector and the partner-in-charge of the Palo Alto office, relocated last year from the firm’s Dallas office to bolster the firm’s corporate practice in Silicon Valley and to leverage his technology sector leadership role.
Dallas partners Brian Henchey, Courtney York and Steve Marcus and Washington, D.C. partner Don Lonczak also were involved in the deal.
New York-based law firm Davis Polk & Wardwell was also involved in the spinoff, providing Sallie Mae bank regulatory advice.
Navient, which began trading on the NASDAQ May 1 as NAVI, will service nearly $300 billion in student loans and provide customer service to assist 12 million customers. It is operating as an independent company. The new company’s headquarters are in Wilmington, Del.
Baker Botts has represented Sallie Mae for several years on corporate governance, SEC compliance and other general corporate matters.
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