Freddie Mac prizes $ 292 million in sustainability bonds


McLEAN, Virginia, November 19, 2021 (GLOBE NEWSWIRE) – Freddie mac (OTCQB: FMCC) recently priced a new offering of tax-exempt loan-backed credit risk transfer securities (TELs) made by state or local housing agencies and secured by housing affordable rentals. This is the company’s twelfth ML certificate offering and the sixth ML-Deal with the sustainability obligations nickname.

The company plans to guarantee approximately $ 292 million of fixed rate ML certificates (ML-12 certificates) which are supported by a pool of fixed rate TELs. ML-12 certificates are expected to be paid on or around November 24, 2021.

ML-12 Certificates are referred to as “Sustainability Bonds” under the Freddie Mac Sustainability Bonds. The proceeds will be used to finance multi-family properties that (a) finance affordable housing for low to moderate income families, (b) may have features, or are located in areas, which provide new economic opportunities for residents. and (c) may include certain environmental impact characteristics.

ML-12 pricing
To classify Main/
Notional
Rising
(mm)
Weighted
Mean
Life (years)
Spread (bps) Coupon Yield Dollar
Price
A-US $ 292,676 13.64 S + 27 2,340 % 1.996 % $ 103.9981
X-US $ 292,676 13.27 T + 170 1.219 % 3.366 % $ 13.1629

Details

  • Lead Manager and Bookkeepers: Jefferies LLC and Wells Fargo Securities, LLC
  • Co-managers: Bancroft Capital, LLC, JP Morgan Securities LLC, Piper Sandler & Co. and Stifel, Nicolaus & Company, Incorporated
  • Rating agency: S&P Global Ratings

Related links

ML-12 Certificates are issued by FRETE 2021-ML12 Trust (ML-12 Trust). Class A-US certificates are senior principal and interest certificates of first rank and Class X-US certificates are interest-only certificates, both rated AA + (sf) by S&P Global Ratings. Class A-US and Class X-US certificates are guaranteed by Freddie Mac. The ML-12 Trust will also issue Class B-US certificates, which will not be guaranteed by Freddie Mac.

Freddie Mac Multifamily is a leading issuer of structured multi-family agency-guaranteed securities. ML-Deals are part of the company’s business strategy to transfer part of the risk of losses to taxpayers and private investors who buy the unsecured subordinated bonds. ML Certificates generally offer a wide range of options for investors with stable cash flow and structured credit enhancement.

This announcement does not constitute an offer to sell any Freddie Mac securities. Offers for any given security are only made through the applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the Securities and Exchange Commission (SEC) on February 11. 2021; all other reports filed by Freddie Mac with the SEC in accordance with Section 13 (a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2020, excluding any information “provided” to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC in accordance with Sections 13 (a), 13 (c) or 14 of the Exchange Act, excluding any information “provided” 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 control of the company. Management’s expectations for the future of the Company 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 forward-looking statements and ‘others. These assumptions, judgments, estimates and factors are discussed in the company’s annual report on Form 10-K for the year ended December 31, 2020, and its reports on Forms 10-Q and 8-K, which are available. on the Investor Relations website. company website page at www.FreddieMac.com/investisseurs and the SEC website at www.sec.gov.

The company makes no commitment to update any forward-looking statements it makes to reflect events or circumstances occurring after the date of this press release. The Multi-Family Investors section of the company’s website at https://mf.freddiemac.com/investors/ will also be updated, from time to time, with information on significant developments or other events that may be of importance to investors, and we encourage investors to regularly access this website for such updated information.

The financial and other information contained in the documents accessible on this page are only valid as of the date of these documents. The information could be out of date and no longer accurate. Freddie Mac assumes no obligation, and disclaims any duty, to update the information contained in these documents.

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

MEDIA CONTACT: Mike Morosi
703-918-5851
[email protected]
INVESTOR CONTACTS: Robert Koontz
571-382-4082
Luba Kim Reynolds
212-418-8879



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