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

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) has updated the results for its tender offer to purchase STACR^® Debt Notes, as detailed in the Offer to Purchase dated Feb. 1, 2022. By the Expiration Time on Feb. 7, 2022, approximately $2,144 million in original principal amount of Notes were validly tendered. However, not all expected Notes were delivered by the Guaranteed Delivery Deadline on Feb. 9, 2022. Detailed results indicate various acceptance percentages across different securities, highlighting the ongoing capital management strategies of Freddie Mac.

Positive

• Approximately $2,144 million in principal amount of Notes tendered.
• Freddie Mac's strategies reflect strong capital management.

Negative

• Not all expected Notes were delivered by the Guaranteed Delivery Deadline.

MCLEAN, Va., Feb. 10, 2022 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) (the “Company”) today updated 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the Notes (including Notes expected to be tendered by guaranteed delivery) had been validly tendered and not properly withdrawn. However, as of 5:00 p.m., New York City time, on Wednesday, Feb. 9, 2022 (the “Guaranteed Delivery Deadline”), not all Notes expected to be tendered by guaranteed delivery had been delivered. Accordingly, Freddie Mac has updated the results 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 Accepted
STACR 2015-DNA3 M3	3137G0GW3	US3137G0GW39	$292,821,000		14.99%	$43,890,000
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		0.33%	$460,000
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						$2,073,109,231

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.

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.

MEDIA CONTACT: Fred Solomon
703-903-3861
Frederick_Solomon@freddiemac.com

FAQ

What are the updated tender results for FMCC's STACR Debt Notes?

As of the Expiration Time on Feb. 7, 2022, approximately $2,144 million in STACR Debt Notes were validly tendered, but not all expected Notes were delivered as of the Guaranteed Delivery Deadline.

What was the amount of STACR Debt Notes accepted in the tender offer?

The total original principal amount of STACR Debt Notes accepted in the tender offer was approximately $2,073,109,231.

What are the acceptance percentages for the STACR Debt Notes?

Acceptance percentages varied, with notable figures such as 93.03% for STACR 2018-DNA1 M2 and 62.38% for STACR 2016-DNA4 M3.

When was the Expiration Time for FMCC's tender offer?

The Expiration Time for the tender offer was 5:00 p.m. New York City time on Feb. 7, 2022.

Who are the lead dealer managers for FMCC's tender offer?

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