MCLEAN, Va., April 24 - Freddie Mac (NYSE: FRE) today announced that it will conduct cash tender offers for the repurchase of up to $26.3 billion in principal amount of a targeted group of European-style callable debt securities with expired options during the week of April 24, 2006.
"This transaction demonstrates our ongoing commitment to the performance and liquidity of all of our debt securities," said John Radwanski, vice president and assistant treasurer of Freddie Mac. "Today's announcement is consistent with our funding activity announced for the second quarter of 2006."
Freddie Mac will offer to repurchase any and all outstanding amounts of the selected targeted securities from investors through Morgan Stanley, the designated lead manager for the offers, or through J.P. Morgan Chase and UBS Investment Bank, the designated co-dealer managers for the offers. Each eligible security will be repurchased at a fixed spread to an outstanding Freddie Mac Reference Notes(R) security.
The tender offers will commence on Monday, April 24, 2006 at 9 a.m. EDT and expire at 4 p.m. EDT, on Friday, April 28, 2006, unless extended. Holders of the targeted securities wishing to tender may do so at anytime between 9 a.m. and 4 p.m. EDT during the period in which the offers are open. Results of the tender offer will be announced on Monday, May 1, 2006 and will be available on Freddie Mac's Debt Securities Web page at http://www.FreddieMac.com/debt.
The table below illustrates how the purchase price for each security tendered pursuant to the applicable offer to purchase will be determined. The purchase price will be determined in the manner described in the Offer to Purchase dated April 24, 2006, by reference to the applicable fixed spread over the yield to maturity of the Reference Security listed below at the time of the tender, plus an amount equal to any accrued and unpaid interest to but excluding the date of payment of the purchase price.
Fixed
Principal Amount Spread
CUSIP/ISIN Title of Security Outstanding Reference Security (bps)
3.750% Debt $1,577,005,000 4.000% Reference 2.3
3128X3SM6/ Security due Notes due August
US3128X3SM61 August 3, 2007 17, 2007
3.375% Debt $838,465,000 4.000% Reference 3.0
3128X3TM5/ Security due Notes due August
US3128X3TM52 August 23, 2007 17, 2007
3.300% Debt $1,000,000,000 4.000% Reference 2.5
Security due Notes due August
3128X3VY6/ September 14, 17, 2007
US3128X3VY62 2007
2.875% Debt $500,000,000 4.000% Reference 3.3
Security due Notes due August
3128X2J22/ September 18, 17, 2007
US3128X2J224 2007
3128X3C76 3.520% MTN due $1,000,000,000 4.375% Reference 2.0
October 18, 2007 Notes due November
16, 2007
3128X3ZZ9 3.500% MTN due $746,500,000 4.375% Reference 3.0
October 19, 2007 Notes due November
16, 2007
3.250% Debt $1,847,622,000 4.375% Reference 2.5
3128X3H55/ Security due Notes due November
US3128X3H556 November 2, 2007 16, 2007
3.350% Debt $525,000,000 4.375% Reference 3.2
3128X3L50/ Security due Notes due November
US3128X3L509 November 9, 2007 16, 2007
3.550% Debt $1,500,000,000 4.375% Reference 2.1
3128X3N74/ Security due Notes due November
US3128X3N745 November 15, 2007 16, 2007
3.500% Debt $429,565,000 5.125% Reference 3.6
3128X0C64/ Security due Notes due April
US3128X0C645 February 13, 2008 18, 2008
3.500% Debt $1,749,768,000 5.125% Reference 2.0
3128X03N7/ Security due Notes due April
US3128X03N79 April 1, 2008 18, 2008
4.300% Debt $500,000,000 5.125% Reference 3.1
Security due Notes due April
3128X36N8/ September 24, 18, 2008
US3128X36N88 2008
3.875% Debt $2,350,000,000 4.875% Reference 1.5
3128X2ME2/ Security due Notes due February
US3128X2ME27 January 12, 2009 17, 2009
3.755% Debt $603,154,000 4.875% Reference 2.1
3128X2P90/ Security due Notes due February
US3128X2P908 March 18, 2009 17, 2009
4.375% Debt $927,625,000 4.875% Reference 2.7
3128X3SL8/ Security due Notes due February
US3128X3SL88 July 30, 2009 17, 2009
4.125% Debt $1,879,839,000 4.000% Reference 1.3
3128X3VA8/ Security due Notes due December
US3128X3VA86 September 1, 2009 15, 2009
4.125% Debt $1,000,000,000 4.000% Reference 2.0
3128X3K85/ Security due Notes due December
US3128X3K857 November 18, 2009 15, 2009
4.375% Debt $936,500,000 4.000% Reference 3.6
3128X33F8/ Security due Notes due December
US3128X33F81 January 25, 2010 15, 2009
4.250% Debt $475,247,000 4.000% Reference 4.2
3128X34W0/ Security due Notes due December
US3128X34W06 February 24, 2010 15, 2009
4.375% Debt $1,000,000,000 4.000% Reference 2.5
3128X35R0/ Security due Notes due December
US3128X35R02 March 1, 2010 15, 2009
4.750% Debt $2,000,000,000 4.750% Reference 1.4
3128X2EV3/ Security due Notes due January
US3128X2EV34 December 8, 2010 18, 2011
4.500% Debt $937,100,0000 4.750% Reference 2.5
3128X2HT5/ Security due Notes due January
US3128X2HT50 December 16, 2010 18, 2011
4.125% Debt $1,987,650,000 4.750% Reference 2.7
3128X2ZQ1/ Security due Notes due January
US3128X2ZQ10 February 24, 2011 18, 2011
Total $26,311,040,000
This announcement is neither an offer to sell nor a solicitation of offers to buy any of these securities. Neither Freddie Mac, nor the lead manager, nor the co-dealer managers makes any recommendation that any holder of the securities tender or refrain from tendering all or any portion of the principal amount of such holder's securities. Holders must make their own decisions whether to tender securities, and if so, decide on the principal amount of securities to tender. Freddie Mac's securities are obligations of Freddie Mac only. The securities, including any interest or return of discount on the securities, are not guaranteed by and are neither debts nor obligations of the United States or any federal agency or instrumentality other than Freddie Mac. The tender offers are being made only upon the terms and subject to the conditions set forth in the Offer to Purchase dated April 24, 2006.
Freddie Mac is a stockholder-owned company established by Congress in 1970 to support homeownership and rental housing. Freddie Mac fulfills its mission by purchasing residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than four million renters in America.
