Freddie Mac Prices $327 Million Sustainability Bonds Offering of Guaranteed Tax-Exempt ML Certificates

Offering Continues Support for Multifamily Affordable Housing Projects

MCLEAN, Va., June 21, 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 tenth ML Certificate offering and fourth ML-Deal with the sustainability bonds moniker.

The company expects to guarantee approximately $327 million in fixed- rate ML Certificates (ML-10 Certificates) that are supported by a pool of fixed-rate TELs. The ML-10 Certificates are expected to settle on or about June 24, 2021.

The ML-10 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	$173.970		12.99	S - 1	2.032%	1.681%	$103.9989
A-CA	$153.930		13.27	S + 0	2.046%	1.701%	$103.9913
X-US	$173.970		12.61	T + 160	2.055%	3.225%	$21.4775
X-CA	$153.930		12.66	T + 165	1.518%	3.278%	$15.8206

Details

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

Related Links

• ML-10 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]