Freddie Mac (OTCQB: FMCC) announced a fixed‑price cash tender offer that will run from May 4 to May 8, 2026, for seven Structured Agency Credit Risk (STACR) note series totaling $1.553 billion in original principal. The offer includes the 2021‑2025 series that have substantially deleveraged and no longer provide an economically sensible means of transferring credit risk.
The purchase price is based on each note’s original principal amount, an applicable factor, and a tender consideration that ranges from $1,016.94 to $1,128.13 per $1,000 of principal. Investors who tender their notes will receive accrued and unpaid interest up to, but not including, the settlement date of May 12, 2026.
BofA Securities, Inc. and Citigroup Global Markets Inc. are the lead dealer managers for the transaction, with CastleOak Securities, L.P. acting as co‑dealer manager. Settlement will be completed on May 12, 2026, with the repurchased notes retired and cancelled.
Freddie Mac’s decision to buy back these notes is part of its broader Credit Risk Transfer (CRT) strategy. By repurchasing notes that have substantially deleveraged, the company reduces interest expense and improves its capital structure, freeing up capital that can be deployed elsewhere. The move signals confidence that the company can fund the purchase from its own resources and maintain a robust balance sheet.
Since launching the STACR program in 2021, Freddie Mac has conducted fifteen tender offers that have repurchased approximately $17 billion of bonds. The current offer continues that trend, underscoring the company’s commitment to managing its CRT portfolio on a quarterly basis while preserving the ability to issue new STACR and ACIS transactions.
"As we enter 2026, Freddie Mac's Single‑Family CRT program remains committed to providing structured risk transfer products with quarterly transactions and enhanced pool performance data through our Clarity Data Intelligence portal," said Christian Valencia, Vice President and head of Credit Risk Transfer.
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