Freddie Mac Prices Approximately $809 Million SLST Securitization

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) announced the pricing of its first Seasoned Loans Structured Transaction Trust (SLST) offering for 2021, totaling approximately $809 million. This securitization includes about $744 million in guaranteed senior certificates and $65 million in non-guaranteed subordinate certificates. It features 8,927 seasoned re-performing loans aimed at reducing credit and market risks. The settlement date is projected for May 27, 2021.

Positive

• Successful pricing of SLST offering, valued at $809 million.
• Significant portion ($744 million) consists of guaranteed senior certificates.

Negative

• None.

MCLEAN, Va., May 20, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today announced pricing of the first Seasoned Loans Structured Transaction Trust (SLST) offering of 2021—a securitization of approximately $809 million including both guaranteed senior and non-guaranteed subordinate securities backed by a pool of seasoned re-performing loans (RPLs). The SLST program is a fundamental part of Freddie Mac's seasoned loan offerings which reduce less-liquid assets in its mortgage-related investments portfolio and shed credit and market risk via economically reasonable transactions.

Freddie Mac SLST Series 2021-1 includes approximately $744 million in guaranteed senior certificates and approximately $65 million in non-guaranteed subordinate certificates. The right to purchase the subordinate certificates was awarded on May 17 via an auction. The transaction is expected to settle on May 27, 2021.

The underlying collateral backing the certificates consists of 8,927 fixed-, adjustable-, and step-rate, seasoned RPLs, the majority of which were previously modified to assist borrowers.

The loans are currently serviced by Specialized Loan Servicing LLC (SLS) in accordance with requirements that prioritize borrower retention options in the event of default and promote neighborhood stability.

Advisors to this transaction are BofA Securities, Inc., and J.P. Morgan Securities, LLC as co-lead managers and joint bookrunners, and Citigroup Global Markets Inc., Nomura Securities International, Inc., Oppenheimer & Co., Inc., Wells Fargo Securities, LLC, and R. Seelaus & Co., LLC (a woman-owned business) as the co-managers.

To date, Freddie Mac has sold almost $9 billion of Non-Performing Loans (NPLs) and securitized approximately $71 billion of RPLs consisting of $30 billion of fully guaranteed PCs, $31 billion of SCRT senior/sub securitizations, and $10 billion of Seasoned Loans Structured Transaction (SLST) offerings. Additional information about the company's seasoned loan offerings can be found at: http://www.freddiemac.com/seasonedloanofferings/

This announcement is not an offer to sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (SEC) on February 11, 2021; all other reports Freddie Mac filed with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2020, excluding any information "furnished" to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information “furnished” to the SEC on Form 8-K.

Freddie Mac’s press releases sometimes contain forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond the company’s control. Management’s expectations for the company’s future necessarily involve a number of assumptions, judgments and estimates, and various factors could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements. These assumptions, judgments, estimates and factors are discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2020, and its reports on Form 10-Q and Form 8-K, which are available on the Investor Relations page of the company’s Web site at www.FreddieMac.com/investors and the SEC’s website at www.sec.gov. The company undertakes no obligation to update forward-looking statements it makes to reflect events or circumstances occurring after the date of this press release.

The financial and other information contained in the documents that may be accessed on this page speaks only as of the date of those documents. The information could be out of date and no longer accurate. Freddie Mac undertakes no obligation, and disclaims any duty, to update any of the information in those documents.

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 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 is the SLST offering by Freddie Mac?

The SLST offering by Freddie Mac is a securitization of seasoned re-performing loans totaling approximately $809 million.

When is the settlement date for Freddie Mac's SLST offering?

The settlement date for Freddie Mac's SLST offering is projected for May 27, 2021.

How much of the SLST offering is in guaranteed senior certificates?

Approximately $744 million of the SLST offering consists of guaranteed senior certificates.

What is the value of the non-guaranteed subordinate certificates in the SLST offering?

The non-guaranteed subordinate certificates in the SLST offering are valued at approximately $65 million.

How many seasoned re-performing loans back the SLST offering?

The SLST offering is backed by 8,927 seasoned re-performing loans.