EduBourseActualitésFreddie Mac Prices Offering of Non-Convertible Non-Cumulative Perpetual Preferred Stock

Freddie Mac Prices Offering of Non-Convertible Non-Cumulative Perpetual Preferred Stock

McLean, VA – Freddie Mac (NYSE: FRE) today announced that it has priced $6 billion of its fixed-to-floating rate non-convertible non-cumulative perpetual preferred stock, CUSIP 313400624 and NYSE symbol FRE.prZ. The shares are expected to be issued on December 4, 2007, subject to the satisfaction of customary closing conditions.

The 240 million shares of preferred stock are being offered to investors at $25 per share with a fixed dividend rate through December 31, 2012 of 8.375 percent. Thereafter, the dividend rate will be the higher of 3-month LIBOR plus 416 basis points, or 7.875 percent. Freddie Mac will have the option to redeem all or part of the shares on December 31, 2012 and on each fifth anniversary thereafter, at $25 per share plus accrued dividends.

“We are very pleased by the strong investor interest and demand shown in our preferred stock offering,” said Richard Syron, Freddie Mac chairman and chief executive officer. “Our offering was substantially over-subscribed. We are raising capital in this offering to enable Freddie Mac to continue fulfilling our important housing mission through the current market environment, and better position us to effectively manage the company going forward.”

The preferred stock was offered via a syndicate of dealers headed by Lehman Brothers Inc. and Goldman, Sachs & Co. An application has been made to list the preferred stock on the New York Stock Exchange.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible more than 50 million times, ensuring financing for one in six homebuyers and more than four million renters.

Pierre Perrin-Monlouis
Pierre Perrin-Monlouis
Fondateur de Rente et Patrimoine (cabinet de gestion de patrimoine), Pierre Perrin-Monlouis est un analyste et trader pour compte propre. Il vous fait profiter de son expérience en trading grâce à ses analyses financières et décrypte pour vous les actualités des marchés. Son approche globale des marchés combine à la fois l'analyse technique et l'analyse fondamentale sur l'ensemble des marchés : crypto, forex, actions et matières premières.
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