SOURCE: Freddie Mac

Freddie Mac

June 15, 2015 12:04 ET

Freddie Mac Announces Fifth STACR Offering This Year, STACR 2015-DNA2

MCLEAN, VA--(Marketwired - Jun 15, 2015) - Freddie Mac (OTCQB: FMCC) today announced its intention to sell its fifth Structured Agency Credit Risk (STACR®) debt notes offering this year of $950 million, pending market conditions. Through STACR, Freddie Mac transfers a portion of its credit risk on certain groups of single-family loans to private investors. This STACR Series 2015-DNA2 offering is the company's second transaction where losses will be allocated based on the actual losses realized on the related reference obligations instead of allocating losses using a fixed severity approach.

Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities LLC will serve as co-lead managers and joint bookrunners. Deutsche Bank Securities Inc. and Jefferies LLC are co-managers, and Great Pacific Securities is a selling group member. The offering is scheduled to settle on or around June 29, 2015.

STACR Series 2015-DNA2 has a reference pool of Single-Family mortgages originated August through November 2014 with an unpaid principal balance of more than $31.9 billion. Freddie Mac holds the senior loss risk in the reference pool, and a portion of the risk in the Class M-1, M-2, M-3 and the first loss Class B tranche. KBRA and Moody's are rating the M-1, M-2, M-3 and MACR classes.

Freddie Mac has led the market in introducing new risk-sharing initiatives with 13 STACR offerings and seven ACIS transactions since 2013. Through STACR and ACIS, Freddie Mac has laid off a portion of credit risk on more than $281 billion of UPB in Single-Family mortgages, representing more than one million loans.

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, 2014, filed with the Securities and Exchange Commission (SEC) on February 19, 2015; 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, 2014, 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. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company's Annual Report on Form 10-K for the year ended December 31, 2014, and its reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investor Relations page of the company's Web site at www.FreddieMac.com/investors and the SEC's Web site at www.sec.gov.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.