Freddie Mac Announces the Issuance of a New Mortgage-Linked Amortizing Notes Security

12 Jan, 2012, 16:33 ET from Freddie Mac

MCLEAN, Va., Jan. 12, 2012 /PRNewswire/ -- Freddie Mac (OTC: FMCC) announced today that it plans to issue a new Mortgage-Linked Amortizing Notes security.  The offering will be priced on Friday, January 13, 2012, and settle on Tuesday, January 17, 2012.

Freddie Mac Mortgage-Linked Amortizing Notes (MLANs) are senior unsecured debt obligations that have cash flows that mimic the principal payments of referenced agency mortgage-related securities held in Freddie Mac's Mortgage-Related Investments Portfolio.  The mortgage-related security referenced by MLANs may be a specific Freddie Mac Giant, Participation Certificate (PC), a combination of PCs or REMIC tranches, or any other agency mortgage-related security.

Monthly payments on a MLAN will consist of principal payments and interest payments.  The principal payments will be based on the monthly publicly disclosed factor of the referenced mortgage-related security while the interest payments will accrue and be paid at a fixed rate.  MLANs will have a maturity date shorter than the stated maturity date of the referenced mortgage-related security.  A MLAN security is non-callable by Freddie Mac but may be retired earlier than its maturity date if the referenced mortgage-related security repays principal at a rapid rate due to prepayments.

The security is being offered by Goldman, Sachs & Co., with co-managers Credit Suisse and J.P. Morgan Chase.

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, 2010, filed with the Securities and Exchange Commission ("SEC") on February 24, 2011, and all documents that Freddie Mac files with the SEC pursuant to Section 13(a), 13(c) or 14 of the Securities Exchange Act of 1934, 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, 2010 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. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.  www.FreddieMac.com

SOURCE Freddie Mac



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