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Repurchase Operation Overview: €Reference Notes® Securities
| Debt Securities Program Feature |
Description |
| Public Notice |
An overnight public notice
will be provided via the Freddie Mac website, designated dealers and major
newswires. In rare circumstances, less advance notice (at least one hour)
may be given. Advance notice will include target issues, maximum repurchase
amount, offering submission deadline and settlement date. |
| Response Time to Dealer |
Freddie Mac expects to provide
an automated confirmation of trade to participating dealers as soon as possible
following completion of the repurchase operation. |
| Public Results Announcement |
Amount repurchased by issue
and overall offer-to-cover ratio will be posted within 15 minutes after
the offering submission deadline. |
| Issue eligibility and Lockout
Period |
Each €Reference Notes
securities issue will not be eligible for repurchase during the first three
months following issuance or re-opening (tap) of that issue.
€Reference
Notes securities of similar maturities will not be repurchased during the
period beginning one week prior to an announced issuance window through
the settlement date. Existing €Reference Notes securities will be deemed
to have a similar maturity if their maturity differs by 18 months or less
from the maturity of the €Reference Notes securities scheduled to be
issued. |
| Execution Methodology |
Dealers submit offers, expressed
in yield in increments of one-tenth of a basis point, via the Internet. |
| Offerings Per Issue |
Multiple offerings will be
permitted for each issue. |
| Award Process |
After the offering submission
deadline, Freddie Mac will consider all offerings together and will order
the offerings from the lowest to the highest offering price. Offerings may
be accepted in full, accepted in part or rejected. |
| Minimum Issue Size - following repurchase operation |
The minimum outstanding amount
of each €Reference Notes securities issue following a repurchase will
be €3 billion. |
| Frequency |
Freddie Mac expects to conduct
€Reference Notes securities repurchase operations from time to time
depending on market conditions. |
| Dealer Group |
ABN Amro, Banca IMI Securities,
Barclays Capital, Inc, BNP Paribas, CDC IXIS, Credit Agricole Indo-suez,
Credit Suisse First Boston, Deutsche Bank, Dresdner Kleinwort Wasserstein,
Goldman Sachs Group, HSBC-CCF, HypoVereinsbank, ING Barings, J.P. Morgan
Chase, Lehman Brothers, Merrill Lynch, Morgan Stanley, Citigroup Global
Markets, Inc., Societe Generale and UBS Warburg. |
| Settlement |
All trades will be settled
at T+3. |
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