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

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) announced the results of its offer to buy back Structured Agency Credit Risk (STACR) Debt Notes. By the expiration time of August 8, 2022, approximately $2.461 billion in the original principal amount of notes were tendered. The settlement date for accepted notes is expected on August 10, 2022. The tender offer was facilitated by BofA Securities and Wells Fargo Securities as lead dealer managers. The offer remains subject to certain conditions, and participation may be restricted in some jurisdictions.

Positive

• $2.461 billion in STACR Debt Notes successfully tendered, indicating strong market demand.
• Settlement date for purchased notes expected shortly, ensuring efficient capital management.

Negative

• High percentage of some notes tendered suggests potential liquidity issues.
• The offer is void in certain jurisdictions, limiting participation.

MCLEAN, Va., Aug. 09, 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 August 2, 2022 (supplemented by Supplement No.1, dated August 2, 2022, and as further as amended from time to time, the “Offer to Purchase”) and related Notice of Guaranteed Delivery dated August 2, 2022 (collectively, 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, August 8, 2022 (the “Expiration Time”), approximately $2,461 million aggregate original principal amount of the Notes had been validly tendered and not properly withdrawn as set forth in the table below: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 2014-DN3 M-3	3137G0BK4	US3137G0BK46	$320,000,000		63.26%	$202,417,188
STACR 2014-DN4 M-3	3137G0CU1	US3137G0CU19	$312,000,000		54.41%	$169,764,477
STACR 2014-HQ2 M-3	3137G0CH0	US3137G0CH08	$74,378,952		13.15%	$9,778,626
STACR 2015-HQ2 M-3	3137G0FJ3	US3137G0FJ37	$95,000,000		59.96%	$56,961,000
STACR 2015-HQA1 M-3	3137G0GJ2	US3137G0GJ28	$120,788,000		37.30%	$45,048,469
STACR 2015-DNA3 M-3	3137G0GW3	US3137G0GW39	$262,586,000		41.54%	$109,071,587
STACR 2015-HQA2 M-3	3137G0HJ1	US3137G0HJ19	$92,800,077		50.76%	$47,105,511
STACR 2016-HQA1 M-3	3137G0JJ9	US3137G0JJ90	$217,529,411		39.27%	$85,433,996
STACR 2016-DNA2 M-3	3137G0JU4	US3137G0JU46	$458,898,000		74.84%	$343,439,000
STACR 2016-HQA2 M-3	3137G0KE8	US3137G0KE84	$224,208,400		74.68%	$167,448,200
STACR 2016-DNA3 M-3	3137G0KQ1	US3137G0KQ15	$245,167,829		51.75%	$126,885,245
STACR 2016-DNA4 M-3	3137G0LJ6	US3137G0LJ62	$133,160,580		36.40%	$48,467,225
STACR 2017-DNA1 M-2	3137G0MD8	US3137G0MD83	$56,150,615		33.88%	$19,023,500
STACR 2017-HQA1 M-2	3137G0NE5	US3137G0NE57	$248,734,197		71.22%	$177,157,386
STACR 2017-DNA2 M-2	3137G0NX3	US3137G0NX39	$197,356,753		99.49%	$196,356,753
STACR 2017-HQA2 M-2	3137G0PU7	US3137G0PU71	$182,505,321		97.97%	$178,805,321
STACR 2017-DNA3 M-2	3137G0QQ5	US3137G0QQ50	$42,896,976		94.59%	$40,576,974
STACR 2017-HQA3 M-2	3137G0RL5	US3137G0RL54	$80,403,206		18.05%	$14,515,000
STACR 2018-DNA1 M-2	3137G0TH2	US3137G0TH25	$33,827,983		10.27%	$3,472,983
STACR 2018-HQA1 M-2	3137G0UD9	US3137G0UD91	$616,500,000		68.08%	$419,737,121
Total						$2,461,465,562

The settlement date for the Notes tendered and accepted for purchase in the Offer is expected to occur on Wednesday, August 10, 2022. Any Notes tendered and accepted for purchase in the Offer using the Notice of Guaranteed Delivery are expected to be purchased on Thursday, August 11, 2022.

BofA Securities, Inc. and Wells Fargo Securities, LLC are lead dealer managers, and Academy Securities, Inc. 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 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

____________________
¹ Original Principal Amounts have been adjusted to reflect reported exchange activity of MAC Notes or any Original Notes that are not identified as “Notes” under the Offer to Purchase into such “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 2015-DNA3 M-3, the original principal amount tendered and accepted includes $5,290,000 expected to be tendered by guaranteed delivery prior to the guaranteed delivery deadline. For STACR 2016-HQA1 M-3, the original principal amount tendered and accepted includes $18,076,910 expected to be tendered by guaranteed delivery prior to the guaranteed delivery deadline. The guaranteed delivery deadline is 5 p.m. on Wednesday, August 10, 2022.

 

FAQ

What is the tender result for Freddie Mac's STACR Debt Notes?

Freddie Mac announced that approximately $2.461 billion in STACR Debt Notes were validly tendered for purchase.

When is the settlement date for the tendered notes?

The settlement date for the notes tendered and accepted is expected to be August 10, 2022.

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

BofA Securities and Wells Fargo Securities are the lead dealer managers for the offer.

What impact could the tender offer have on Freddie Mac's stock (FMCC)?

The tender offer may positively influence FMCC stock by demonstrating strong market demand for its debt securities.