Freddie Mac Prices New $3 Billion Three-Year Reference Notes Security

Rhea-AI Summary

Freddie Mac (FMCC) has announced the pricing of a new $3 billion, 0.125% three-year USD Reference Notes® security, set to mature on October 16, 2023. Priced at 99.627, the yield stands at 0.25%, which is 7.5 basis points higher than that of three-year U.S. Treasury Notes. The offering will settle on October 16, 2020, and is led by J.P. Morgan Securities, TD Securities, and Wells Fargo Securities, among others. This announcement does not constitute an offer to sell Freddie Mac securities.

Positive

• Pricing of $3 billion, 0.125% three-year USD Reference Notes.
• Yield of 0.25% is attractive compared to Treasury Notes.
• Strong syndicate of dealers involved in the offering.

Negative

• None.

McLEAN, Va., Oct. 14, 2020 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) announced today that it priced its new $3 billion, 0.125% three-year USD Reference Notes^® security due on October 16, 2023. The issue, CUSIP number 3137EAEY1, was priced at 99.627 to yield 0.25%, 7.5 basis points more than the yield on three-year U.S. Treasury Notes. The issue will settle on Friday, October 16, 2020.

The new Reference Notes security is offered via a syndicate of dealers headed by J.P. Morgan Securities LLC, TD Securities (USA) LLC, and Wells Fargo Securities, LLC. Co-manager will be Drexel Hamilton, LLC, Duncan-Williams, Inc, Great Pacific Securities, Loop Capital Markets LLC, Multi-Bank Securities, Inc., and Tribal Capital Markets, LLC.

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, 2019, filed with the Securities and Exchange Commission (SEC) on February 13, 2020; 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, 2019, 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, 2019, 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

INVESTOR CONTACT: Ameez Nanjee
571-382-4090

FAQ

What is the new Freddie Mac security being issued?

Freddie Mac is issuing a new $3 billion, 0.125% three-year USD Reference Notes security.

What is the yield on the new Reference Notes by Freddie Mac?

The yield on the new Reference Notes is 0.25%.

When will the Freddie Mac securities settle?

The securities will settle on October 16, 2020.

Which firms are involved in the Freddie Mac securities offering?

The offering is led by J.P. Morgan, TD Securities, and Wells Fargo, among others.

What is the maturity date for the new Freddie Mac securities?

The new securities mature on October 16, 2023.