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

MCLEAN, VA--(Marketwired - Jun 24, 2015) - Freddie Mac (OTCQB: FMCC) today priced its fifth Structured Agency Credit Risk (STACR®) debt notes offering this year of $950 million. The offering is scheduled to settle on or around June 29, 2015. Through its innovative, award-winning STACR offerings, Freddie Mac transfers a portion of its credit risk on certain groups of single-family loans to private investors. 

Pricing for STACR Series 2015-DNA2:

• M-1 class was one-month LIBOR plus a spread of 115 basis points.
• M-2 class was one month LIBOR plus a spread of 260 basis points.
• M-3 class was one month LIBOR plus a spread of 390 basis points.
• B class was one month LIBOR plus a spread of 755 basis points.

"DNA2 ends a great first half of 2015 for STACR," said Mike Reynolds, Freddie Mac vice president of Credit Risk Transfer. "We've issued over $4 billion of STACR bonds this year, up from just under $2 billion in the first half of 2014. Our current estimate is to issue another $2.5 to $4 billion by the end of the year."

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 are 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.

STACR Series 2015-DNA2 has a reference pool of Single-Family mortgages funded 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 14 STACR offerings, including this one, and seven ACIS® transactions since 2013. The first STACR transaction in 2013 sparked demand that has been growing steadily. Freddie Mac was the first agency to market credit risk transfer transactions with STACR and ACIS and has since grown its investor base to more than 160 unique investors, including many of the largest money managers in the U.S. Freddie Mac's STACR offerings have evolved over time and recent offerings were the first of their kind to sell first loss and actual loss risk.