By TUCKER ECHOLS
Washington Business Journal

Sallie Mae's failed buyout is just a memory now.

Reston, Mass.-based SLM Corp., known as Sallie Mae, says the lawsuit it filed related to the proposed merger of the company, as well as all counterclaims, will be dismissed and the merger agreement has been terminated.

Central to the decision were commitments for $31 billion of 364-day financing to Sallie Mae from a consortium of banks led by Bank of America, JPMorgan Chase, Barclays Capital, Deutsche Bank, Credit Suisse, and The Royal Bank of Scotland, and from UBS. The financing replaces $30 billion of interim financing put in place by Bank of America and JPMorgan Chase as part of the proposed merger transaction.

Sallie Mae says funding under the commitments is subject to various conditions.

On Oct. 8, the student lender sued investment firms J.C. Flowers & Co., Friedman Fleischer, Lowe, JP Morgan Chase and Bank of America, seeking a declaration that the investors repudiated their $25 billion merger agreement and seeking $900 million in damages.