MCLEAN, VA--(Marketwired - Oct 22, 2015) - Freddie Mac (OTCQB: FMCC) today announced its intention to sell its seventh Structured Agency Credit Risk (STACR®) debt notes offering this year of more than $1 billion, subject to market conditions. Through STACR, Freddie Mac transfers a portion of its credit risk on certain Single-Family loans to private capital markets investors.
This STACR Series 2015-DNA3 offering is the company's fourth 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.
J.P. Morgan and Morgan Stanley will serve as co-lead managers and joint bookrunners. Barclays and Credit Suisse are co-managers and Loop Capital is a selling group member. The offering is scheduled to settle on or around November 9, 2015.
STACR Series 2015-DNA3 has a reference pool of Single-Family mortgages acquired from December 2014 through March 2015 with an unpaid principal balance of more than $34.7 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.
Freddie Mac has led the market in introducing new risk-sharing initiatives with 15 STACR offerings, including first loss and actual loss risk transactions, and 10 ACIS transactions since mid-2013. Through STACR and ACIS, Freddie Mac has laid off a substantial portion of credit risk on more than $330 billion of UPB in single-family mortgages. 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 170 unique investors.
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, 2014, filed with the Securities and Exchange Commission (SEC) on February 19, 2015; 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, 2014, 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. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company's Annual Report on Form 10-K for the year ended December 31, 2014, and its reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investor Relations page of the company's Web site at www.FreddieMac.com/investors and the SEC's Web site at www.sec.gov.
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.