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

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) announced the final results of its tender offer to purchase STACR® Debt Notes, with approximately $1.639 billion in principal amount validly tendered as of the February 10, 2023 expiration date. A detailed table outlines individual note amounts, tender percentages, and accepted amounts. The settlement date for the accepted notes is expected on February 14, 2023. BofA Securities and Wells Fargo Securities acted as lead managers for the offer. This initiative supports Freddie Mac's mission to mitigate credit risk in the housing market, enhancing liquidity and stability.

Positive

• Approximately $1.639 billion in STACR Debt Notes were validly tendered, indicating strong investor interest.
• The offer supports Freddie Mac's strategy of transferring credit risk to private capital, promoting liquidity in the housing market.

Negative

• None.

MCLEAN, Va., Feb. 13, 2023 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) (the “Company”) today announced the tender results of its previously announced offer to purchase (the “Offer”) any and all of the STACR® (Structured Agency Credit Risk) Debt Notes listed in the table below (the “Notes”).

The Company has conducted the Offer in accordance with the conditions set forth in the Offer to Purchase dated February 6, 2023 (as amended from time to time, the “Offer to Purchase”), the related Notice of Guaranteed Delivery dated February 6, 2023 (the “Notice of Guaranteed Delivery”) and the related Letter of Transmittal dated February 6, 2023 (collectively with the Offer to Purchase and the Notice of Guaranteed Delivery, 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 Friday, February 10, 2023 (the “Expiration Time”), approximately $1.639 billion aggregate original principal amount of the Notes had been validly tendered and not properly withdrawn as set forth in the table below:

Title of Security	CUSIP Number	ISIN Number	Original Principal Amount		Percentage of Original Principal Amounts Tendered and Accepted1		Original Principal Amounts Tendered and Accepted
STACR 2014-DN1 M-3	3137G0AM1	US3137G0AM11	$408,000,000		94.94	%	$387,373,000
STACR 2014-DN2 M-3	3137G0AY5	US3137G0AY58	$391,000,000		87.92	%	$343,785,000
STACR 2015-DN1 B	3137G0DZ9	US3137G0DZ96	$75,000,000		92.37	%	$69,275,000
STACR 2016-DNA1 M-3	3137G0HW2	US3137G0HW20	$367,523,000		76.02	%	$279,401,377
STACR 2016-HQA1 M-3	3137G0JJ9	US3137G0JJ90	$132,095,415		100.00	%	$132,095,415
STACR 2017-DNA1 B-1	3137G0MX4	US3137G0MX48	$120,000,000		99.47	%	$119,361,000
STACR 2017-HQA1 B-1	3137G0NC9	US3137G0NC91	$55,000,000		94.84	%	$52,160,000
STACR 2017-DNA2 B-1	3137G0PR4	US3137G0PR43	$215,000,000		73.20	%	$157,379,667
STACR 2017-HQA2 B-1	3137G0QN2	US3137G0QN20	$112,500,000		87.60	%	$98,545,000
Total							$1,639,375,459

1 Rounded to the nearest hundredth of a percent

These are the final results. The settlement date for the Notes tendered and accepted for purchase in the Offer is expected to occur on Tuesday, February 14, 2023.

BofA Securities, Inc. and Wells Fargo Securities, LLC are lead dealer managers, and CastleOak Securities, L.P. is 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); or Wells Fargo Securities, LLC at (704) 410-4756 or (866) 309-6316 (toll free). Requests for the 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 Credit Risk Transfer (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 Data Intelligence® (Clarity), our CRT data intelligence portal.

About Freddie Mac
Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | Twitter | LinkedIn | Facebook | Instagram | YouTube

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

FAQ

What were the results of Freddie Mac's tender offer for STACR Debt Notes?

Freddie Mac announced that approximately $1.639 billion in STACR Debt Notes were validly tendered by the expiration date of February 10, 2023.

When is the settlement date for the accepted STACR notes?

The settlement date for the accepted STACR notes is expected to occur on February 14, 2023.

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

BofA Securities and Wells Fargo Securities were the lead dealer managers for Freddie Mac's tender offer.

What is Freddie Mac's mission regarding credit risk transfer?

Freddie Mac's mission is to transfer credit risk from U.S. taxpayers to private capital, promoting liquidity and stability in the housing market.