UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
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Item 8.01 Other Events.
On June 4, 2025, Nelnet, Inc. ("Nelnet") received cash proceeds of $411 million as a result of redeeming certain of its membership interests of ALLO Holdings LLC ("ALLO") under a Membership Unit Redemption Agreement previously reported on a Current Report on Form 8-K filed on April 21, 2025.
As part of this transaction, Nelnet redeemed a portion of its voting membership interests of ALLO and all its outstanding preferred membership interests, including the preferred return accrued on such membership interests through June 3, 2025. As a result of the redemption, Nelnet recognized a pre-tax gain of $175 million.
Immediately following the closing of the transaction, Nelnet no longer owns any preferred membership interests of ALLO, but maintains a significant voting equity investment in ALLO. Nelnet’s ownership of ALLO decreased from 45% to 27%. Nelnet will continue to account for its remaining 27% voting membership interests of ALLO under the Hypothetical Liquidation at Book Value (HLBV) method of accounting, with a carrying value of $0.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
NELNET, INC.
Date: June 4, 2025 By: /s/ JAMES D. KRUGER
Name: James D. Kruger
Title: Chief Financial Officer