Replication-dependent histone genes comprise a unique group of genes whose expression is coordinately regulated with DNA synthesis (
15). Expression of these genes peaks during S phase of the cell cycle and rapidly declines upon completion of DNA replication at the end of S phase (
10,
30). In contrast to all other mRNAs, replication-dependent histone mRNAs are not polyadenylated and instead terminate with a highly conserved stem-loop structure (
15). The stem-loop structure, consisting of six base pairs and a four nucleotide loop, associates with a protein termed the stem-loop binding protein (SLBP) or the hairpin binding protein (
14,
29). Mammalian SLBP is a 30-kDa protein containing 270 amino acids and can be divided into three domains: the centrally located RNA binding domain (RBD) and the flanking N-terminal and C-terminal domains. The RBD of SLBP does not resemble any previously identified motifs involved in RNA recognition (
29).
Replication-dependent histone mRNAs are formed from longer pre-mRNA transcripts by an endonucleolytic cleavage (
3,
8). The processing reaction depends on two sequence elements in the histone pre-mRNA: the stem-loop structure (
27) and a purine-rich element, termed the histone downstream element (HDE), located 10 to 15 nucleotides further downstream (
2). The stem-loop is recognized by SLBP, whereas the HDE associates with the U7 snRNP, containing the 60-nucleotide U7 snRNA and associated proteins (
20,
22). Binding of U7 snRNP to the pre-mRNA occurs via base pairing between the HDE and the 5′ end of U7 snRNA (
2,
18) and is likely also strengthened by interactions between a U7-specific protein(s) and the SLBP–stem-loop (SLBP/SL) complex (
5). This additional interaction is especially important in processing of histone pre-mRNAs containing HDEs which can form only a weak duplex with the U7 snRNA and thus are unable to efficiently recruit U7 snRNP to the pre-mRNA (
5,
17,
23). Stable binding of SLBP and U7 snRNP to their respective targets in the pre-mRNA leads to a subsequent association of additional
trans-acting factors, including a poorly characterized heat-labile factor (
9), followed by cleavage of the pre-mRNA four to five nucleotides downstream from the stem-loop. After 3′ end processing, SLBP remains associated with the terminal stem-loop and assists the mature histone mRNA to the cytoplasm, where it likely plays an important role in histone mRNA translation and stability (
7,
25,
31). SLBP is cell cycle regulated and therefore may be a key factor responsible for cell cycle regulation of histone mRNA levels (
30).
Two proteins that bind the stem-loop structure at the 3′ end of histone mRNA have been isolated from
Xenopus laevis oocytes (
28). One protein, referred to as xSLBP1, is homologous to mammalian SLBPs and is also involved in 3′ end processing of histone pre-mRNAs. A second SLBP found in
Xenopus oocytes, designated xSLBP2, does not participate in 3′ end processing and probably functions in storage of histone mRNA during oogenesis (
28). xSLBP2 is similar to xSLBP1 only in the central RBD. Replacement of the RBD of xSLBP1 with the corresponding domain of xSLBP2 resulted in a chimeric protein that retained high affinity for the stem-loop. Surprisingly, this chimeric protein was inactive in processing although it contains the C-terminal region from xSLBP1 required for processing (
11). Thus, binding to the stem-loop of histone pre-mRNA is not the only function of the RBD in 3′ end processing. Here we identify residues in the RBD of human SLBP that are not required for binding to the RNA target and instead play another role in processing. Our experiments indicate that these residues together with the 20-amino-acid region in the C terminus are each important for efficient recruitment of the U7 snRNP to the histone pre-mRNA. In addition, by aligning RBD sequences of various SLBPs, we identified absolutely conserved amino acids and demonstrated that these residues are required for binding to the stem-loop RNA. Changes in some of these residues results in a reduction in affinity for the stem-loop, accompanied by a decrease in processing activity, demonstrating the importance of high-affinity binding of SLBP to the stem-loop for efficient 3′ end processing.