Sec Form 13D Filing - Sherborne Investors LP filing for NAVIENT CORP (NAVI) - 2022-03-11

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 13D

(Rule 13d-101)

INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT

TO § 240.13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO

§ 240.13d-2(a)

(Amendment No. 1)¹

Navient Corporation

(Name of Issuer)

Common Stock, par value $0.01 per share

(Title of Class of Securities)

 

63938C108

(CUSIP Number)

 

EDWARD BRAMSON

STEPHEN WELKER

SHERBORNE INVESTORS MANAGEMENT LP

135 East 57^th Street

New York, New York 10022

(212) 735-1000

 

STEVE WOLOSKY, ESQ.

KENNETH MANTEL, ESQ.

OLSHAN FROME WOLOSKY LLP

1325 Avenue of the Americas

New York, New York 10019

(212) 451-2300

(Name, Address and Telephone Number of Person

Authorized to Receive Notices and Communications)

 

March 10, 2022

(Date of Event Which Requires Filing of This Statement)

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box ¨.

Note:  Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits.  See § 240.13d-7 for other parties to whom copies are to be sent.

 

 

1              The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

	1		NAME OF REPORTING PERSON
				SHERBORNE INVESTORS MANAGEMENT LP
	2		CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP															(a) ☐
																		(b) ☐
	3		SEC USE ONLY
	4		SOURCE OF FUNDS
				AF
	5		CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)															☐
	6		CITIZENSHIP OR PLACE OF ORGANIZATION
				DELAWARE
NUMBER OF				7		SOLE VOTING POWER
SHARES
BENEFICIALLY							- 0 -
OWNED BY				8		SHARED VOTING POWER
EACH
REPORTING							12,426,285
PERSON WITH				9		SOLE DISPOSITIVE POWER
							- 0 -
				10		SHARED DISPOSITIVE POWER
							12,426,285
	11		AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
				12,426,285
	12		CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES															☐
	13		PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
				8.2%
	14		TYPE OF REPORTING PERSON
				PN

  

	1		NAME OF REPORTING PERSON
				NEWBURY INVESTORS LLC
	2		CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP															(a) ☐
																		(b) ☐
	3		SEC USE ONLY
	4		SOURCE OF FUNDS
				WC
	5		CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)															☐
	6		CITIZENSHIP OR PLACE OF ORGANIZATION
				DELAWARE
NUMBER OF				7		SOLE VOTING POWER
SHARES
BENEFICIALLY							- 0 -
OWNED BY				8		SHARED VOTING POWER
EACH
REPORTING							12,426,285
PERSON WITH				9		SOLE DISPOSITIVE POWER
							- 0 -
				10		SHARED DISPOSITIVE POWER
							12,426,285
	11		AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
				12,426,285
	12		CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES															☐
	13		PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
				8.2%
	14		TYPE OF REPORTING PERSON
				OO

  

 

	1		NAME OF REPORTING PERSON
				SHERBORNE INVESTORS LP
	2		CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP															(a) ☐
																		(b) ☐
	3		SEC USE ONLY
	4		SOURCE OF FUNDS
				AF
	5		CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)															☐
	6		CITIZENSHIP OR PLACE OF ORGANIZATION
				DELAWARE
NUMBER OF				7		SOLE VOTING POWER
SHARES
BENEFICIALLY							- 0 -
OWNED BY				8		SHARED VOTING POWER
EACH
REPORTING							12,426,285
PERSON WITH				9		SOLE DISPOSITIVE POWER
							- 0 -
				10		SHARED DISPOSITIVE POWER
							12,426,285
	11		AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
				12,426,285
	12		CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES															☐
	13		PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
				8.2%
	14		TYPE OF REPORTING PERSON
				PN

  

 

	1		NAME OF REPORTING PERSON
				SHERBORNE INVESTORS GP, LLC
	2		CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP															(a) ☐
																		(b) ☐
	3		SEC USE ONLY
	4		SOURCE OF FUNDS
				AF
	5		CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)															☐
	6		CITIZENSHIP OR PLACE OF ORGANIZATION
				DELAWARE
NUMBER OF				7		SOLE VOTING POWER
SHARES
BENEFICIALLY							- 0 -
OWNED BY				8		SHARED VOTING POWER
EACH
REPORTING							12,426,285
PERSON WITH				9		SOLE DISPOSITIVE POWER
							- 0 -
				10		SHARED DISPOSITIVE POWER
							12,426,285
	11		AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
				12,426,285
	12		CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES															☐
	13		PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
				8.2%
	14		TYPE OF REPORTING PERSON
				OO

  

 

	1		NAME OF REPORTING PERSON
				SHERBORNE INVESTORS MANAGEMENT GP, LLC
	2		CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP															(a) ☐
																		(b) ☐
	3		SEC USE ONLY
	4		SOURCE OF FUNDS
				AF
	5		CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)															☐
	6		CITIZENSHIP OR PLACE OF ORGANIZATION
				DELAWARE
NUMBER OF				7		SOLE VOTING POWER
SHARES
BENEFICIALLY							- 0 -
OWNED BY				8		SHARED VOTING POWER
EACH
REPORTING							12,426,285
PERSON WITH				9		SOLE DISPOSITIVE POWER
							- 0 -
				10		SHARED DISPOSITIVE POWER
							12,426,285
	11		AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
				12,426,285
	12		CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES															☐
	13		PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
				8.2%
	14		TYPE OF REPORTING PERSON
				OO

  

 

	1		NAME OF REPORTING PERSON
				EDWARD BRAMSON
	2		CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP															(a) ☐
																		(b) ☐
	3		SEC USE ONLY
	4		SOURCE OF FUNDS
				OO
	5		CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)															☐
	6		CITIZENSHIP OR PLACE OF ORGANIZATION
				UNITED STATES OF AMERICA
NUMBER OF				7		SOLE VOTING POWER
SHARES
BENEFICIALLY							- 0 -
OWNED BY				8		SHARED VOTING POWER
EACH
REPORTING							12,426,285
PERSON WITH				9		SOLE DISPOSITIVE POWER
							- 0 -
				10		SHARED DISPOSITIVE POWER
							12,426,285
	11		AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
				12,426,285
	12		CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES															☐
	13		PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
				8.2%
	14		TYPE OF REPORTING PERSON
				IN

  

 

	1		NAME OF REPORTING PERSON
				STEPHEN WELKER
	2		CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP															(a) ☐
																		(b) ☐
	3		SEC USE ONLY
	4		SOURCE OF FUNDS
				OO
	5		CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)															☐
	6		CITIZENSHIP OR PLACE OF ORGANIZATION
				UNITED STATES OF AMERICA
NUMBER OF				7		SOLE VOTING POWER
SHARES
BENEFICIALLY							- 0 -
OWNED BY				8		SHARED VOTING POWER
EACH
REPORTING							12,426,285
PERSON WITH				9		SOLE DISPOSITIVE POWER
							- 0 -
				10		SHARED DISPOSITIVE POWER
							12,426,285
	11		AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
				12,426,285
	12		CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES															☐
																		& #xA0;
	13		PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
				8.2%
	14		TYPE OF REPORTING PERSON
				IN

  

The following constitutes Amendment No. 1 to the Schedule 13D filed by the undersigned (“Amendment No. 1”). This Amendment No. 1 amends the Schedule 13D as specifically set forth herein.

Item 3.

Source and Amount of Funds or Other Consideration.

Item 3 is hereby amended and restated to read as follows:

Newbury Investors purchased 12,426,285 Shares for approximately $237,965,994, excluding brokerage commissions, with working capital in open market transactions, except as otherwise noted herein, including in Schedule A, which is incorporated herein by reference.

Item 5.

Interest in Securities of the Issuer.

Items 5(a) – (c) are hereby amended and restated to read as follows:

The aggregate percentage of Shares reported owned by each person named herein is based upon 152,132,902 Shares outstanding, as of January 31, 2022, which is the total number of Shares outstanding as reported in the Issuer’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 25, 2022.

A.       Newbury Investors

 

(a)

As of the close of business on March 11, 2022, Newbury Investors beneficially owned 12,426,285 Shares.

 

Percentage: Approximately 8.2%

 

(b)

1. Sole power to vote or direct vote: 0 2. Shared power to vote or direct vote: 12,426,285 3. Sole power to dispose or direct the disposition: 0 4. Shared power to dispose or direct the disposition: 12,426,285

 

(c)

The transactions in the Shares by Newbury Investors since the filing of the Schedule 13D are set forth in Schedule A and are incorporated herein by reference.

 

B.

Sherborne Investors LP

 

(a)

Sherborne Investors LP, as the managing member of Newbury Investors, may be deemed the beneficial owner of the 12,426,285 Shares owned by Newbury Investors.

 

Percentage: Approximately 8.2%

 

(b)

1. Sole power to vote or direct vote: 0 2. Shared power to vote or direct vote: 12,426,285 3. Sole power to dispose or direct the disposition: 0 4. Shared power to dispose or direct the disposition: 12,426,285

 

(c)

Sherborne Investors LP has not entered into any transactions in the Shares since the filing of the Schedule 13D. The transactions in the Shares on behalf of Newbury Investors since the filing of the Schedule 13D are set forth in Schedule A and are incorporated herein by reference.

 

C.

Sherborne Investors Management

 

(a)

Sherborne Investors Management, as the investment manager of Newbury Investors, may be deemed the beneficial owner of the 12,426,285 Shares owned by Newbury Investors.

 

Percentage: Approximately 8.2%

 

(b)

1. Sole power to vote or direct vote: 0 2. Shared power to vote or direct vote: 12,426,285 3. Sole power to dispose or direct the disposition: 0 4. Shared power to dispose or direct the disposition: 12,426,285

 

(c)

Sherborne Investors Management has not entered into any transactions in the Shares since the filing of the Schedule 13D. The transactions in the Shares on behalf of Newbury Investors since the filing of the Schedule 13D are set forth in Schedule A and are incorporated herein by reference.

 

D.

Sherborne GP

 

(a)

Sherborne GP, as the general partner of Sherborne Investors LP, may be deemed the beneficial owner of the 12,426,285 Shares owned by Newbury Investors.

 

Percentage: Approximately 8.2%

 

(c)

1. Sole power to vote or direct vote: 0 2. Shared power to vote or direct vote: 12,426,285 3. Sole power to dispose or direct the disposition: 0 4. Shared power to dispose or direct the disposition: 12,426,285

 

(d)

Sherborne GP has not entered into any transactions in the Shares since the filing of the Schedule 13D. The transactions in the Shares on behalf of Newbury Investors since the filing of the Schedule 13D are set forth in Schedule A and are incorporated herein by reference.

 

E.

Sherborne Management GP

 

(a)

Sherborne Management GP, as the general partner of Sherborne Investors Management, may be deemed the beneficial owner of the 12,426,285 Shares owned by Newbury Investors.

 

Percentage: Approximately 8.2%

 

(b)

1. Sole power to vote or direct vote: 0 2. Shared power to vote or direct vote: 12,426,285 3. Sole power to dispose or direct the disposition: 0 4. Shared power to dispose or direct the disposition: 12,426,285

 

(e)

Sherborne Management GP has not entered into any transactions in the Shares since the filing of the Schedule 13D. The transactions in the Shares on behalf of Newbury Investors since the filing of the Schedule 13D are set forth in Schedule A and are incorporated herein by reference.

 

F.

Messrs. Bramson and Welker

 

(a)

Each of Messrs. Bramson and Welker, as a managing director of each of Sherborne GP and Sherborne Management GP, may be deemed the beneficial owner of the 12,426,285 Shares owned by Newbury Investors.

 

Percentage: Approximately 8.2%

 

(b)

1. Sole power to vote or direct vote: 0 2. Shared power to vote or direct vote: 12,426,285 3. Sole power to dispose or direct the disposition: 0 4. Shared power to dispose or direct the disposition: 12,426,285

 

(c)

Messrs. Bramson and Welker have not entered into any transactions in the Shares since the filing of the Schedule 13D. The transactions in the Shares on behalf of Newbury Investors since the filing of the Schedule 13D are set forth in Schedule A and are incorporated herein by reference.

 

Item 6.

Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer.

 

Item 6 is hereby amended to add the following:

 

As previously disclosed, Newbury Investors entered into certain cash-settled total return swap agreements with unaffiliated third party financial institutions as the counterparties (the “Swaps”). Newbury Investors elected to terminate certain of these Swaps early pursuant to their terms prior to their respective maturity dates. As of the close of business on March 11, 2022, the remaining Swaps constitute economic exposure to an aggregate of 16,362,212 notional Shares, representing approximately 10.8% of the outstanding Shares. Taking into account the remaining Swaps, the Reporting Persons have economic exposure in an amount equivalent to 28,788,497 Shares in the aggregate, representing approximately 18.9% of the outstanding Shares.

 

SIGNATURES

After reasonable inquiry and to the best of his knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.

Dated: March 11, 2022

	Newbury Investors LLC
	By:	Sherborne Investors LP, its managing member
	By:	Sherborne Investors GP, LLC, its general partner
	By:	/s/ Stephen Welker
		Name:	Stephen Welker
		Title:	Managing Director

 

 

	Sherborne Investors LP
	By:	Sherborne Investors GP, LLC, its general partner
	By:	/s/ Stephen Welker
		Name:	Stephen Welker
		Title:	Managing Director

 

 

	Sherborne Investors Management LP
	By:	Sherborne Investors Management GP, LLC, its general partner
	By:	/s/ Stephen Welker
		Name:	Stephen Welker
		Title:	Managing Director

 

 

	Sherborne Investors GP, LLC
	By:	/s/ Stephen Welker
		Name:	Stephen Welker
		Title:	Managing Director

 

 

	Sherborne Investors Management GP, LLC
	By:	/s/ Stephen Welker
		Name:	Stephen Welker
		Title:	Managing Director

 

 

	/s/ Edward Bramson
	Edward Bramson

 

 

	/s/ Stephen Welker
	Stephen Welker

 

 

SCHEDULE A

Transactions in Shares Since the Filing of the Schedule 13D

Nature of Transaction

Number of Shares Purchased/(Sold)

Price per Share

Date of Purchase/Sale

 

NEWBURY INVESTORS LLC

 

 

Purchase of Shares	539,693	16.04	3/7/2022
Purchase of Shares	366,343	16.35	3/8/2022
Purchase of Shares	583,188	16.68	3/9/2022
Purchase of Shares	368,500	16.49	3/10/2022
Purchase of Shares	225,880	16.76	3/11/2022