Freddie Mac Prices First STACR Credit Risk Sharing Transaction of 2014

Freddie Mac Prices First STACR Credit Risk Sharing Transaction of 2014 
MCLEAN, VA -- (Marketwired) -- 02/06/14 --   A $1 billion offering of
the Freddie Mac (OTCQB: FMCC) Structured Agency Credit Risk
(STACR(R)) debt notes priced today. This offering represents one of
the largest subordinate mortgage credit securitizations ever brought
to market and Freddie Mac's first STACR offering this year. With
STACR debt notes, private sources, and not taxpayers, predominately
take the credit risk. Freddie Mac introduced the product last year
and led the market in successfully completing two of the largest
credit security offerings in 2013. 
"We are pleased with the investor interest and demand for this
product as more investors are buying the bonds," said Donna Corley,
senior vice president of single family pricing and costing for
Freddie Mac. "We plan regular and consistent issuances this year so
that the amount of risk transferred to private investors will
increase over time."  
Kevin Palmer, vice president of single-family strategic credit
costing and structuring for Freddie Mac, added, "We've introduced
three bonds for the STACR 2014 series, compared to the two we offered
in 2013, which provides more credit protection to Freddie Mac and
enhances the product mix for investors. We believe these enhancements
attracted even more investors, as we saw over 20 new investors in the
book. We anticipate that more investors will continue to be attracted
to the risk sharing program."  
Over 65 investors participated in the offering. Pricing for the STACR
Debt Notes, Series 2014 DN1 M-1 class was one-month LIBOR plus a
spread of 100 basis points. Pricing for the M-2 class was one month
LIBOR plus a spread of 220 basis points. Pricing for the M-3 class
was one month LIBOR plus a spread of 450 basis points. The offering
was oversubscribed and is scheduled to settle on or around Feb. 12,
2014. 
The STACR 2014 DN1, M-1 class received investment grade ratings of A1
from Moody's and A by Kroll, subject to ongoing monitoring. The M-2
class received investment grade ratings of Baa1 from Moody's and BBB
by Kroll, subject to ongoing monitoring. The M-3 class was not rated.
The three classes have an exchangeable feature giving investors the
option to either combine pro-rata portions of the cash flows from the
M-1, M-2 and M-3 classes or strip off a portion of the interest from
any class to create bonds with different margins.  
For STACR 2014 DN1, the amount of periodic principal and ultimate
principal paid by Freddie Mac is determined by the performance of a
very large and diversified reference pool of almost 140,000
residential loans, representing an unpaid principal balance of
approximately $32.4 billion. This pool consists of a subset of
30-year fixed-rate single-family mortgages acquired by Freddie Mac in
the second quarter of 2013. Freddie Mac holds the senior risk and the
first loss risk in reference pool, and a portion of the risk in the
M-1, M-2 and M-3 classes. 
STACR Debt Notes, Series 2014-DN1, were offered to the market by
Credit Suisse and Bank of America Merrill Lynch as co-lead managers
and joint bookrunners. BNP Paribas, JP Morgan and Nomura served as
co-managers, and Mischler Financial as a selling group member.  
This announcement is not an offer to sell any Freddie Mac securities.
Offers for any given security are made only through applicable
offering circulars and related supplements, which incorporate Freddie
Mac's Annual Report on Form 10-K for the year ended December 31,
2012, filed with the Securities and Exchange Commission ("SEC") on
February 28, 2013; all other reports Freddie Mac filed with the SEC
pursuant to Section 13(a) of the Securities Exchange Act of 1934
("Exchange Act") since December 31, 2012, excluding any information
"furnished" to the SEC on Form 8-K; and all documents that Freddie
Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the
Exchange Act, excluding any information "furnished" to the SEC on
Form 8-K. 
Freddie Mac's press releases sometimes contain forward-looking
statements. A description of factors that could cause actual results
to differ materially from the expectations expressed in these and
other forward-looking statements can be found in the company's Annual
Report on Form 10-K for the year ended December 31, 2012, and its
reports on Form 10-Q and Form 8-K, filed with the SEC and available
on the Investor Relations page of the company's Web site at
www.FreddieMac.com/investors and the SEC's Web site at www.sec.gov. 
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. Today Freddie Mac is making
home possible for one in four homebuyers and is one of the largest
sources of financing for multifamily housing. www.FreddieMac.com.
Twitter: @FreddieMac 
MEDIA CONTACT:
Patti Boerger
703-903-2445
Patricia_Boerger@FreddieMac.com 
INVESTOR CONTACT: 
Kevin Palmer
571-382-4313 
 
 
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