Navient announced it received a notice of Schedule 13D filing by Canyon Capital Advisors in what could be a prelude to an effort to gain a board seat.
Canyon, a hedge fund with more than $20 billion in assets, stated in its filing that it discussed a vacant seat on the Navient board and the financial performance of the company.
Navient, which is based in Wilmington, released the following statement:
“Navient values Canyon’s investment and interest in our company. We regularly have discussions with shareholders and will engage with Canyon to discuss potential board nominees and to continue to learn more about their ideas toward our common goal of enhancing shareholder value,” the company.
Los Angeles-based Canyon has purchased about 7.8 percent of Navient ’s stock. The investment is valued at more than $260 million, according to the filing.
The company was required to file the 13D with the Securities and Exchange Commission because it purchased more than 5 percent of Navient shares.
Navient services student loans and operates collection companies and other businesses that include parking meter processing. The company was spun off from student lender Sallie Mae.
Despite a strong stock market, Navient shares peaked at about $22 in 2015. Shares rose two percent to $12.84 in after-hours trading.
The company has struggled with criticism over its student loan servicing practices.
Optimism that the Trump administration would put the company under less scrutiny than its predecessor has not translated into higher share prices.
