Freddie Mac Prices Fourth STACR Offering This Year
OREANDA-NEWS. Freddie Mac (OTCQB: FMCC) today priced its fourth offering this year of Structured Agency Credit Risk (STACR®) debt notes. Through the award-winning and innovative STACR program, Freddie Mac transfers a portion of its credit risk on certain single-family loans to private capital market investors.
Pricing for STACR 2016-HQA2:
- M-1 class was one-month LIBOR plus a spread of 120 basis points.
- M-2 class was one month LIBOR plus a spread of 225 basis points.
- M-3 class was one month LIBOR plus a spread of 515 basis points.
- B class was one month LIBOR plus a spread of 1150 basis points.
J.P. Morgan and Citigroup are co-lead managers and joint bookrunners. Barclays, Bank of America Merrill Lynch, Deutsche Bank Securities and Wells Fargo Securities are co-managers, and Loop Capital is the selling group member.
The $627 million STACR 2016-HQA2 offering references loans with LTVs ranging from 80 to 95 percent. Freddie Mac retains the senior loss risk in the capital structure and a portion of the risk in the Class M-1, M-2, M-3, and the first loss Class B tranches.
STACR 2016-HQA2 has a reference pool of single-family mortgages with an unpaid principal balance of more than $18.4 billion. The reference pool consists of a subset of 30-year fixed-rate single-family mortgages recently acquired by Freddie Mac.
Freddie Mac has a STACR issuance calendar to help investors plan their allocations. The calendar is available on the Credit Risk Offerings page of the company's web site at www.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, 2015, filed with the Securities and Exchange Commission (SEC) on February 18, 2016; 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, 2015, 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.
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