M&A - NELNET INC

Form Type: 8-K

Filing Date: 2025-04-21

Corporate Action: Acquisition

Type: New

Accession Number: 000125860225000023

Filing Summary: On April 18, 2025, Nelnet, Inc. entered into a Membership Unit Redemption Agreement with ALLO Holdings LLC and other parties as part of a financing transaction which provides ALLO with gross proceeds of $500 million. The agreement involves ALLO redeeming Nelnet's and SDC's preferred membership interests, along with some voting membership interests, expected to close in late May 2025. Post-transaction, Nelnet's ownership in ALLO will reduce from 45% to approximately 26%, and Nelnet anticipates aggregate cash proceeds of approximately $410 million from this transaction, with a pre-tax gain of around $175 million. Nelnet will cease to hold any preferred membership interests in ALLO but will retain significant voting equity.