Freddie Mac Prices $301 Million Sustainability Bonds Offering of Guaranteed Tax-Exempt ML Certificates

Offering Continues Support for Multifamily Affordable Housing Projects

MCLEAN, Va., March 25, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) recently priced a new offering of credit risk transfer securities backed by Tax-Exempt Loans (TELs) made by state or local housing agencies and secured by affordable rental housing. This is the company’s ninth ML Certificate offering and third ML-Deal with the sustainability bonds moniker.

The company expects to guarantee approximately $301 million in fixed- rate ML Certificates (ML-09 Certificates) that are supported by a pool of fixed-rate TELs. The ML-09 Certificates are expected to settle on or about March 30, 2021.

The ML Certificates are designated as “sustainability bonds” within Freddie Mac’s Sustainability Bonds Framework. The proceeds will be used to finance multifamily properties that (a) finance affordable housing to low-to-moderate-income families, (b) may have features, or are located in areas, that further economic opportunity for residents and (c) may include certain environmental impact features.

Class	Principal/ Notional Amount (mm)		Weighted Average Life (Years)	Spread (bps)	Coupon		Yield		Dollar Price
A-US	$301.736		14.51	S + 20	2.358%		2.112%		$102.9944
X-US	$301.736		13.35	T + 215	1.551%		3.958%		$15.6463

Details

• Lead Manager and Bookrunners: Wells Fargo Securities, LLC and Jefferies LLC
• Co-Managers: CastleOak Securities, L.P., Morgan Stanley & Co. LLC, Piper Sandler & Co. and Stifel, Nicolaus & Company, Incorporated
• Rating Agency: S&P Global Ratings
  

Related Links

• ML-09 Offering Circular Supplement
• Tax-Exempt Loan Securitization Program Investor Presentation [pdf]
• Freddie Mac Multifamily Investor Presentation [pdf]
• Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages
• Sustainability bonds Framework [pdf]
  

The ML-09 Certificates are issued by FRETE 2021-ML09 Trust (ML-09 Trust). The Class A-US Certificates are senior principal and interest certificates, which are rated as AA+(sf) by S&P Global Ratings and the Class X-US Certificates are interest-only certificates. The Class A-US and Class X-US Certificates are guaranteed by Freddie Mac. The ML-09 Trust will also issue Class B-US Certificates, which will not be guaranteed by Freddie Mac.