Freddie Mac Announces Final Results of Tender Offer for Certain STACR Notes

Rhea-AI Summary

Freddie Mac (FMCC) reported tender results for its recent fixed-price cash offer for Structured Agency Credit Risk (STACR) notes, totaling approximately $2,489 million in original principal. As of the June 13, 2022 expiration, a significant portion of the tendered amounts was accepted, including 98.39% for STACR Trust 2018-DNA2 and 99.97% for STACR 2019-DNA1. The settlement for accepted notes occurred on June 15, 2022, with additional purchases following on June 16. The offer was managed by BofA Securities and Citigroup Global Markets.

Positive

• Total of approximately $2,489 million in principal amount of STACR notes tendered.
• High acceptance rates for tendered notes, indicating strong demand.

Negative

• None.

MCLEAN, Va., June 16, 2022 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) (the “Company”) today announced the final tender results of its previously announced  fixed-price cash tender offer (the “Offer”) for the purchase of any and all of the STACR^® (Structured Agency Credit Risk) notes listed below (the “Notes”).   Each series of Notes was issued by the STACR trust identified in the table below (each, a “Trust”). Freddie Mac is the holder of the owner certificate issued by each Trust and, as a result, the sole beneficial owner of each Trust.

The Company has conducted the Offer in accordance with the conditions set forth in the Offer to Purchase dated June 7, 2022 (the “Offer to Purchase”) and related Notice of Guaranteed Delivery dated June 7, 2022 (the “Notice of Guaranteed Delivery” and together with the Offer to Purchase, the “Offer Documents”). Capitalized terms used but not defined in this Press Release have the meanings ascribed to such terms in the Offer Documents.

As of 5 p.m., New York City time, on Monday, June 13, 2022 (the “Expiration Time”), approximately $2,489 million aggregate original principal amount of the Notes had been validly tendered and not properly withdrawn as set forth in the table below:

STACR Trust	Series of Note	CUSIP Number	ISIN Number	Original Principal Amounts1,3	Percentage of Original Principal Amounts Tendered and Accepted2,3	Original Principal Amounts Tendered and Accepted3
STACR Trust 2018-DNA2	STACR 2018-DNA2 M-2	35563TAB7	US35563TAB70	$451,954,036	98.39%	$444,674,036
STACR Trust 2018-HQA2	STACR 2018-HQA2 M-2	35563XAH5	US35563XAH52	416,906,000	87.27%	363,829,257
STACR Trust 2018-DNA3	STACR 2018-DNA3 M-2	35563WAH7	US35563WAH79	354,614,034	97.54%	345,875,493
STACR Trust 2019-DNA1	STACR 2019-DNA1 M-2	35563KAH3	US35563KAH32	327,000,000	99.97%	326,895,000
STACR Trust 2019-HQA1	STACR 2019-HQA1 M-2	35563MAH9	US35563MAH97	305,000,000	99.36%	303,035,000
STACR Trust 2019-DNA2	STACR 2019-DNA2 M-2	35564LAH0	US35564LAH06	352,000,000	90.08%	317,066,000
STACR Trust 2019-HQA2	STACR 2019-HQA2 M-2	35564MAH8	US35564MAH88	280,000,000	98.36%	275,415,000
STACR Trust 2019-HRP1	STACR 2019-HRP1 M-2	35564RAK0	US35564RAK05	112,000,000	100.00%	112,000,000
Total						$2,488,789,786

_______________________________________________

¹ Original principal amounts have been adjusted to reflect reported exchange activity of MAC notes or exchangeable notes into eligible Notes initiated during the tender offer period. Reported exchange activity results are preliminary and are subject to change.
² Rounded to the nearest hundredth of a percent.
³ For STACR 2018-DNA3 M-2, the original principal amount tendered and accepted includes $2,200,000 tendered by guaranteed delivery prior to the guaranteed delivery deadline. The guaranteed delivery deadline was 5 p.m. on Wednesday, June 15, 2022.

Notes tendered and accepted for purchase in the Offer settled on Wednesday, June 15, 2022. Notes tendered and accepted for purchase in the Offer using the Notice of Guaranteed Delivery were purchased on Thursday, June 16, 2022.

BofA Securities, Inc. and Citigroup Global Markets Inc. are the lead dealer managers and CastleOak Securities, L.P. is a co-dealer manager for the Offer. For additional information regarding the terms of the Offer, please contact BofA Securities, Inc. at (980) 387-3907 or (888) 292-0070 (toll-free); Citigroup Global Markets Inc. at 212-733-6106 or (800) 558-3745 (toll free); or CastleOak Securities, L.P. at (212) 610-5593. Requests for Offer Documents may be directed to Global Bondholder Services Corporation, as tender agent, at (212) 430-3774 or (855) 654-2015 (toll-free) or by email at contact@gbsc-usa.com.

This announcement does not constitute an invitation to participate in the Offer in or from any jurisdiction in or from which, or to or from any person to or from whom, it is unlawful to make such Offer under applicable securities laws or otherwise. The distribution of materials relating to the Offer, and the transactions contemplated by the Offer, may be restricted by law in certain jurisdictions where it is legal to do so. The Offer is void in all jurisdictions where it is prohibited. If materials relating to the Offer come into your possession, you are required by Freddie Mac to inform yourself of and to observe all of these restrictions. The materials relating to the Offer do not constitute, and may not be used in connection with, an offer or solicitation in any place where offers or solicitations are not permitted by law. If a jurisdiction requires that the Offer be made by a licensed broker or dealer and a dealer manager or any affiliate of a dealer manager is a licensed broker or dealer in that jurisdiction, the Offer shall be deemed to be made by the dealer manager or such affiliate on behalf of Freddie Mac in that jurisdiction.

About Freddie Mac Single-Family Credit Risk Transfer
Freddie Mac’s Single-Family CRT programs transfer credit risk away from U.S. taxpayers to global private capital via securities and (re)insurance policies. We founded the GSE Single-Family CRT market when we issued our first Structured Agency Credit Risk (STACR^®) notes in July 2013. In November 2013, we introduced our Agency Credit Insurance Structure^® (ACIS^®) program. Today, CRT serves as the primary source of private capital investment in residential mortgage credit. For specific STACR and ACIS transaction data, please visit Clarity, our CRT data intelligence portal.

About Freddie Mac
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac, and Freddie Mac’s blog FreddieMac.com/blog.

MEDIA CONTACT: Fred Solomon
703-903-3861
Frederick_Solomon@freddiemac.com

FAQ

What were the final tender results for Freddie Mac's STACR notes?

Freddie Mac reported approximately $2,489 million in original principal amount of STACR notes were tendered by the expiration date of June 13, 2022.

When did the settlement for the accepted STACR notes occur?

Settlement for the accepted STACR notes occurred on June 15, 2022.

Who managed the tender offer for Freddie Mac's STACR notes?

The tender offer was managed by BofA Securities and Citigroup Global Markets.

What is the significance of the acceptance rates in Freddie Mac's tender offer?

High acceptance rates, such as 98.39% for STACR 2018-DNA2, indicate strong demand for Freddie Mac's Structured Agency Credit Risk notes.