MCLEAN, VA--(Marketwired - Apr 22, 2015) - Freddie Mac (
Pricing for STACR Series 2015-DNA1:
- M-1 class was one-month LIBOR plus a spread of 90 basis points.
- M-2 class was one month LIBOR plus a spread of 185 basis points.
- M-3 class was one month LIBOR plus a spread of 330 basis points.
- B class was one month LIBOR plus a spread of 920 basis points.
"We see actual loss-based risk transfer as more sustainable over the long run than calculated loss risk transfer deals, and we are very happy with the initial positive demand from investors," said Mike Reynolds, Freddie Mac vice president of Credit Risk Transfer. "We look forward to integrating actual loss into future transactions."
Credit Suisse is acting as the structuring lead manager, with Citigroup as a co-lead manager and joint bookrunner for STACR Series 2015-DNA1, which has a reference pool of seasoned Single-Family mortgages originated in the fourth quarter of 2012 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. The offering is scheduled to settle on or around April 28, 2015. Fitch and Moody's are rating the M-1, M-2, M-3 and MACR classes.
The company has issued $7.8 billion in STACR bonds to date, representing reference pools of $249.6 billion, through 11 issuances, not including the current STACR Series 2015 DNA1. Since Sept. 2014, STACR bonds have been listed on the Global Exchange Market of the Irish Stock Exchange.
A STACR investor presentation and additional information about the company's Credit Risk Offerings is available at FreddieMac.com.
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 approximately 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.