Freddie Mac Announces Tender Offers for Debt Securities
June 01,
2009
Contact:
corprel@freddiemac.com
or (703) 903-3933
McLean, VA – Freddie Mac (NYSE: FRE) today announced that it will conduct fixed price cash tender offers (each, an "Offer" and, collectively, the "Offers") for the purchase of any and all of a targeted group of its Securities listed below (the "Securities") during the week of June 1, 2009.
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Freddie Mac will offer to purchase from investors for cash the targeted Securities through Barclays Capital, Inc., the designated lead dealer manager for the Offers, and Morgan Stanley & Co. Incorporated and Deutsche Bank Securities Inc., the designated dealer managers for the Offers. Freddie Mac is offering to purchase any and all of the securities listed in the table below, subject to limit of $30 billion in principal amount. The consideration for the principal amount of Securities tendered and accepted for payment pursuant to the Offers will be the applicable tender offer purchase price (the "Purchase Price") specified for each series of Securities below, plus any accrued and unpaid interest thereon ("Accrued Interest") to (but excluding) the Settlement Date (as defined below), upon the terms and subject to the conditions set forth in the Offer to Purchase.
The tender offer period will commence on Monday, June 1, 2009, at 9 a.m. New York City time and expire at 5 p.m. New York City time on Friday, June 5, 2009, unless extended. Holders of the Securities wishing to submit orders to tender may do so by calling the lead dealer manager or dealer managers at anytime between 9 a.m. and 5 p.m. New York City time during the tender offer period. Results of the Offers will be available on Freddie Mac's Debt Securities Web page at www.FreddieMac.com/debt on Monday, June 8, 2009. The Securities purchased are expected to settle on June 9, 2009 (the "Settlement Date").
Each proper tender of Securities with respect to an Offer will be irrevocable, and there are no withdrawal rights with respect to an Offer.
Each Offer is conditioned upon our purchasing no more than $30 billion in principal amount for all Securities pursuant to the Offers. If all Securities validly tendered pursuant to the Offers exceed $30 billion in aggregate principal amount, Freddie Mac shall have the right but not the obligation to terminate one or more Offers so the aggregate principal amount of Securities accepted for purchase pursuant to the Offers is no more than $30 billion. In the event that Freddie Mac exercises its right to terminate one or more Offers, the Offers shall be terminated in order of the termination priority ranking (the "Termination Priority") of each series of Securities as listed below, beginning with the series of Securities designated as Termination Priority 1.
|
Principal Amount
Outstanding (USD) |
CUSIP Number/
ISIN Number |
Maturity Date
|
Purchase Price
per $1,000 Principal Amount |
Termination Priority
|
| 6,000,000,000 | 3128X7CM4 | September 18, 2009 | 1000.48 | 31 |
| 4,500,000,000 | 3128X7CQ5 | September 18, 2009 | 1000.52 | 30 |
| 2,000,000,000 | 3128X7CN2 | September 21, 2009 | 1000.53 | 29 |
| 1,000,000,000 | 3128X7CP7 | September 21, 2009 | 1000.53 | 28 |
| 3,000,000,000 | 3128X7EF7 | September 25, 2009 | 1001.36 | 27 |
| 3,000,000,000 | 3128X7FQ2 | September 28, 2009 | 1000.41 | 26 |
| 1,000,000,000 | 3128X7FN9/ US3128X7FN95 | September 28, 2009 | 1000.40 | 25 |
| 1,000,000,000 | 3128X7HW7 | October 7, 2009 | 1000.30 | 24 |
| 3,000,000,000 | 3128X7JB1/ US3128X7JB12 | October 8, 2009 | 1000.32 | 23 |
| 2,000,000,000 | 3128X7KY9/ US3128X7KY95 | October 19, 2009 | 1000.38 | 22 |
| 2,553,000,000 | 3128X74N1 | October 30, 2009 | 1003.12 | 21 |
| 2,000,000,000 | 3128X7ZQ0/ US3128X7ZQ07 | December 7, 2009 | 1000.25 | 20 |
| 250,000,000 | 3128X7ZS6/ US3128X7ZS62 | December 7, 2009 | 1000.25 | 19 |
| 1,000,000,000 | 3128X7ZV9/ US3128X7ZV91 | December 7, 2009 | 1000.76 | 18 |
| 1,100,000,000 | 3128X7D35/ US3128X7D358 | December 16, 2009 | 1000.25 | 17 |
| 940,000,000 | 3128X8CX8 | December 18, 2009 | 998.91 | 16 |
| 3,000,000,000 | 3128X7M27/ US3128X7M276 | December 23, 2009 | 1000.30 | 15 |
| 3,360,000,000 | 3128X8ES7 | January 8, 2010 | 1002.64 | 14 |
| 1,000,000,000 | 3128X8ET5 | January 8, 2010 | 1002.64 | 13 |
| 1,500,000,000 | 3128X8EU2 | January 8, 2010 | 1002.17 | 12 |
| 2,640,000,000 | 3128X8GE6 | January 22, 2010 | 1003.44 | 11 |
| 700,000,000 | 3128X5B31 | February 1, 2010 | 999.88 | 10 |
| 500,000,000 | 3128X6FR2 | February 1, 2010 | 999.81 | 9 |
| 1,100,000,000 | 3128X8HZ8 | February 4, 2010 | 1001.95 | 8 |
| 1,650,000,000 | 3128X8JX1 | February 9, 2010 | 1001.90 | 7 |
| 100,000,000 | 3128X8MK5 | March 26, 2010 | 1002.63 | 6 |
| 1,000,000,000 | 3128X52V9 | June 1, 2010 | 999.81 | 5 |
| 10,000,000 | 312902C23 | June 28, 2010 | 1031.23 | 4 |
| 9,000,000,000 | 3128X8EW8 | July 12, 2010 | 1002.39 | 3 |
| 5,000,000,000 | 3128X8FL1/ US3128X8FL13 | July 14, 2010 | 1002.43 | 2 |
| 5,000,000,000 | 3128X8MB5/ US3128X8MB57 | August 24, 2010 | 1002.72 | 1 |
|
Total: $69,903,000,000
|
This announcement is neither an offer to sell nor a solicitation of offers to buy any of these securities. Neither Freddie Mac, nor the dealer managers, nor the Information Agent, make 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 Offers are being made only upon the terms and subject to the conditions set forth in the Offer to Purchase dated June 1, 2009.
Copies of the Offer to Purchase may be obtained on Freddie Mac's Web site at www.FreddieMac.com/debt or from the Information Agent for the Offers, Global Bondholder Services Corporation at (212) 430-6688 or (866) 952-2200 (toll free).
Questions regarding the Offers may be directed to Barclays Capital, Inc. at 800-438-3242 (toll-free), Morgan Stanley at 800-624-1808 (toll-free), or Deutsche Bank Securities, Inc. at 866-627-0391 (toll-free).
This announcement does not constitute an invitation to participate in the Offers in or from any jurisdiction in or from which, or to or from any person to or from whom, it is unlawful to make such Offer under applicable securities laws or otherwise.
The distribution of materials relating to the Offers, and the transactions contemplated by the Offers, may be restricted by law in certain jurisdictions where it is legal to do so. The Offers are void in all jurisdictions where it is prohibited. If materials relating to the Offers come into your possession, you are required by Freddie Mac to inform yourself of and to observe all of these restrictions. The materials relating to the Offers do not constitute, and may not be used in connection with, an offer or solicitation in any place where offers or solicitations are not permitted by law. If a jurisdiction requires that the Offers be made by a licensed broker or dealer and a dealer manager or any affiliate of a dealer manager is a licensed broker or dealer in that jurisdiction, the Offers shall be deemed to be made by the dealer manager or such affiliate on behalf of Freddie Mac in that jurisdiction.
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. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.
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