MCLEAN, VA--(Marketwired - Mar 19, 2015) - Freddie Mac (OTCQB: FMCC) today announced its intention to sell its second Structured Agency Credit Risk (STACR®) debt notes offering this year of $725 million, pending market conditions. The STACR Series 2015-HQ1 has loans with LTVs from 80 to 95 percent. Through STACR, Freddie Mac transfers a portion of its credit risk on certain groups of loans to private investors.
With STACR Series 2015-HQ1, Freddie Mac is issuing 150 basis points of first loss and rating the M-3 bond. Freddie Mac holds the senior loss risk in the reference pool and a portion of the risk in the Class M-1, M-2 and M-3, and the first loss Class B tranche.
"We expect routine sales of the higher LTV benchmark HQ series to facilitate more transparency and liquidity in the credit risk transfer market," said Mike Reynolds, Freddie Mac vice president of Credit Risk Transfer.
Credit Suisse and Bank of America Merrill Lynch will serve as co-lead managers and joint bookrunners. STACR Series 2015-HQ1 has a reference pool of recently-originated Single-Family mortgages with an unpaid principal balance of more than $16.5 billion.
A STACR investor presentation pdf is available at FreddieMac.com, as well as information about the company's Credit Risk Offerings.
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.
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 does not undertake an obligation, and disclaims any duty, to update any of the information in those documents. Freddie Mac's future performance, including financial performance, is subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect the company's future results are discussed more fully in our reports filed with the SEC.