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

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) announced the results of its tender offer for STACR Debt Notes, validly tendering approximately $2,144 million in total principal amount by the expiration time of February 7, 2022. The settlement date for accepted notes is expected on February 9, 2022. The offer details, including the specific securities involved, have been outlined in the Offer Documents dated February 1, 2022. BofA Securities and Barclays Capital are the lead dealer managers for the offer.

Positive

• A total of approximately $2,144 million in STACR Debt Notes was successfully tendered, signaling strong interest.

Negative

• No significant new capital raised as this is a buyback rather than new debt issuance.

MCLEAN, Va., Feb. 08, 2022 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) (the “Company”) today announced the tender results of its previously announced offer to purchase any and all of the STACR® (Structured Agency Credit Risk) Debt Notes listed below (the “Notes”).

The Company has conducted the Offer in accordance with the conditions set forth in the Offer to Purchase dated Feb. 1, 2022 (the “Offer to Purchase”) and related Notice of Guaranteed Delivery dated Feb. 1, 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 5:00 p.m., New York City time, on Monday, Feb. 7, 2022 (the “Expiration Time”), approximately $2,144 million aggregate original principal amount of the Notes had been validly tendered and not properly withdrawn as set forth in the table below: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 Amounts1		Percentage of Original Principal Amounts Tendered and Accepted2		Original Principal Amounts Tendered and Accepted3
STACR 2015-DNA3 M3	3137G0GW3	US3137G0GW39	$292,821,000		20.43%		$59,817,506
STACR 2016-DNA1 M3	3137G0HW2	US3137G0HW20	$468,000,000		12.70%		$59,430,484
STACR 2016-HQA1 M3	3137G0JJ9	US3137G0JJ90	$220,000,000		1.12%		$2,470,589
STACR 2016-DNA2 M3	3137G0JU4	US3137G0JU46	$495,000,000		7.29%		$36,102,000
STACR 2016-HQA2 M3	3137G0KE8	US3137G0KE84	$238,150,000		11.06%		$26,341,600
STACR 2016-DNA3 M3	3137G0KQ1	US3137G0KQ15	$389,500,000		37.06%		$144,332,171
STACR 2016-DNA4 M3	3137G0LJ6	US3137G0LJ62	$354,000,000		62.38%		$220,839,420
STACR 2017-HQA1 M2	3137G0NE5	US3137G0NE57	$139,398,197		39.43%		$54,969,811
STACR 2017-DNA2 M2	3137G0NX3	US3137G0NX39	$490,723,000		72.37%		$355,143,247
STACR 2017-HQA2 M2	3137G0PU7	US3137G0PU71	$241,500,000		84.88%		$204,994,679
STACR 2017-DNA3 M2	3137G0QQ5	US3137G0QQ50	$570,735,000		92.48%		$527,838,024
STACR 2018-DNA1 M2	3137G0TH2	US3137G0TH25	$485,095,000		93.03%		$451,267,017
Total							$2,143,546,548

________________________
¹ _{Original Principal Amounts have been adjusted to reflect reported exchange activity of MAC notes or Exchangeable Notes into Eligible Securities 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 _{Original Principal Amount tendered includes Notes tendered using the Notice of Guaranteed Delivery.}

The settlement date for the Notes tendered and accepted for purchase in the Offer is expected to occur on Wednesday, February 9, 2022. Any Notes tendered and accepted for purchase in the Offer using the Notice of Guaranteed Delivery are expected to be purchased on February 10, 2022.

BofA Securities, Inc. and Barclays Capital 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), or Barclays Capital Inc. at (212) 412-5780 (collect) or (800) 438-3242 (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 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 was the tender offer amount for FMCC's STACR Debt Notes?

Freddie Mac announced a tender offer for approximately $2,144 million of STACR Debt Notes.

When is the settlement date for the notes accepted in the tender offer?

The settlement date for the accepted notes is expected to occur on February 9, 2022.

Who are the dealer managers for FMCC's STACR Debt Notes tender offer?

BofA Securities and Barclays Capital are the lead dealer managers for the tender offer.

What is the significance of the STACR Debt Notes tender offer for FMCC?

The tender offer indicates strong investor interest but reflects a buyback strategy rather than new capital generation.