Freddie Mac Prices $248 Million Offering of Guaranteed Tax-Exempt ML Certificates

Offering Continues Support for Multifamily Affordable Housing Projects

MCLEAN, Va., May 15, 2018 (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.

The company expects to guarantee approximately $248 million in floating-rate ML Certificates (ML-04 Certificates) that are supported by a pool of fixed and floating-rate TELs. The ML-04 Certificates are expected to settle on or about May 23, 2018.

ML Certificates are designed to create more liquidity for affordable multifamily housing while simultaneously protecting taxpayers from mortgage risk. The proceeds will be used to finance multifamily affordable housing projects. 

ML-04 Certificates Pricing

Class Principal/Notional Amount (mm) Weighted Average Life (Years) Discount Margin Coupon Dollar Price
A $ 248.655 13.04 32 1 mo LIBOR + 32 $ 100.0000
X $ 276.284 13.35 Not Offered

Details

  • Lead Manager and Bookrunners: Wells Fargo Securities, LLC and Jefferies LLC
  • Co-Managers: Citigroup Global Markets Inc., Goldman, Sachs and Co. LLC and Mischler Financial Group, Inc.

Related Links

The ML-04 Certificates are issued by FRETE 2018-ML04 Trust (ML-04 Trust). The Class A Certificates are senior principal and interest certificates and the Class X Certificates are interest-only certificates. The Class A and Class X Certificates are guaranteed by Freddie Mac. The ML-04 Trust will also issue Class B Certificates, which will not be guaranteed by Freddie Mac.

Freddie Mac Multifamily is a leading issuer of agency-guaranteed structured multifamily securities. ML-Deals are part of the company’s business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds. ML Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement.

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, 2017, filed with the Securities and Exchange Commission (SEC) on February 15, 2018; 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, 2017, 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. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond the company’s control. Management’s expectations for the company’s future necessarily involve a number of assumptions, judgments and estimates, and various factors could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements. These assumptions, judgments, estimates and factors are discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2017, and its reports on Form 10-Q and Form 8-K, which are available on the Investor Relations page of the company’s Web site at www.FreddieMac.com/investors and the SEC’s website at www.sec.gov. The company undertakes no obligation to update forward-looking statements it makes to reflect events or circumstances occurring after the date of this press release.

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 undertakes no obligation, and disclaims any duty, to update any of the information in those documents.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

MEDIA CONTACT: Paul Frommelt
703-903-3999
Paul_Frommelt@FreddieMac.com
INVESTOR CONTACTS: Robert Koontz
571-382-4082
Aaron Dunn
571-382-5818

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