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 | Barclays Capital, Inc, BNP Paribas, Credit Suisse First Boston, Deutsche Bank, Dresdner Kleinwort Wasserstein, Goldman Sachs Group, HSBC-CCF, J.P. Morgan Chase, Merrill Lynch, Morgan Stanley, Citigroup Global Markets, Inc., Societe Generale and UBS Warburg. |
| Settlement | All trades will be settled at T+3. |