Freddie Mac Announces Results of Tender Offer for Certain STACR Notes

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) announced the results of its tender offer to purchase STACR® Notes, with approximately $944 million in principal amount validly tendered by the expiration deadline of October 7, 2022. The settlement date for accepted notes is expected on October 12, 2022, with additional purchases on October 13, 2022. The offer was conducted under the terms of the Offer Documents dated October 3, 2022, and involved various STACR trusts. The company is managing the offer through dealer managers BofA Securities and Barclays Capital.

Positive

• Approximately $944 million in STACR Notes tendered successfully, demonstrating robust investor interest.
• Efficient management of the tender offer process by leading dealer managers.

Negative

• A substantial amount of Notes went untendered, indicating possible investor hesitance.
• The overall acceptance rates for some series of Notes were relatively low, raising concerns about demand.

MCLEAN, Va., Oct. 11, 2022 (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) Notes listed below (the “Notes”). Certain of the series of Notes subject to the Offer were 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 October 3, 2022 (the “Offer to Purchase”) and related Notice of Guaranteed Delivery dated October 3, 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 Friday, October 7, 2022 (the “Expiration Time”), approximately $944 million aggregate original principal amount of the Notes had been validly tendered and not properly withdrawn as set forth in the table below: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	STACR Trust (if applicable)	CUSIP Number	ISIN Number	Original Principal Amounts	Percentage of Original Principal Amounts Tendered and Accepted1	Original Principal Amounts Tendered and Accepted2
STACR 2015-DNA1 M-3	N/A	3137G0EW5	US3137G0EW56	$350,000,000	23.22%	$81,254,000
STACR 2016-DNA1 M-3	N/A	3137G0HW2	US3137G0HW20	$408,569,516	10.05%	$41,046,516
STACR 2017-HRP1 M-2	N/A	3137G0SN0	US3137G0SN02	$80,000,000	25.07%	$20,055,000
STACR 2018-HQA2 M-2	STACR Trust 2018-HQA2	35563XAH5	US35563XAH52	$53,076,743	47.94%	$25,442,543
STACR 2018-HRP1 B-1	STACR Trust 2018-HRP1	3137G0VA4	US3137G0VA44	$259,000,000	89.97%	$233,018,590
STACR 2019-DNA3 M-2	STACR Trust 2019-DNA3	35564TAH3	US35564TAH32	$390,000,000	54.05%	$210,783,981
STACR 2019-HQA3 M-2	STACR Trust 2019-HQA3	35564XAH4	US35564XAH44	$280,000,000	90.28%	$252,795,000
STACR 2019-FTR2 M-2	STACR Trust 2019-FTR2	35564WAH6	US35564WAH60	$114,000,000	69.88%	$79,667,497
Total						$944,063,127

_______________________________________________
1 Rounded to the nearest hundredth of a percent.
2 For STACR 2019-FTR2 M-2, the original principal amount tendered and accepted includes $7,752,573 tendered by Guaranteed Delivery prior to the Guaranteed Delivery deadline. The Guaranteed Delivery deadline is 5:00 p.m. on Wednesday, October 12, 2022.

The settlement date for the Notes tendered and accepted for purchase in the Offer is expected to occur on Wednesday, October 12, 2022. Any Notes tendered and accepted for purchase in the Offer using the Notice of Guaranteed Delivery are expected to be purchased on Thursday, October 13, 2022.

BofA Securities, Inc. and Barclays Capital Inc. 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 Barclays Capital Inc. at (212) 412-5780 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 are the results of Freddie Mac's tender offer for FMCC stock in October 2022?

Freddie Mac announced approximately $944 million of STACR Notes were validly tendered by the October 7, 2022 deadline.

What is the settlement date for the STACR Notes tendered by Freddie Mac?

The settlement date for the accepted Notes is expected on October 12, 2022.

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

The tender offer was managed by BofA Securities and Barclays Capital.

What were the tender results of the STACR Notes by Freddie Mac?

As of the expiration time, a total of approximately $944 million in Notes were tendered.

What is the significance of the tender offer results for FMCC stock?

The results may indicate investor sentiment and demand for Freddie Mac's structured credit products.