Freddie Mac Prices Second STACR Risk-Sharing Deal

Freddie Mac announced Tuesday it has priced a $630 million offering of Structured Agency Credit Risk (STACR) debt notes, marking the second STACR offering in which private sources—not taxpayers—took on the credit risk.

“STACR is part of Freddie Mac’s strategy to share credit risk with private investors while also fostering an agency credit market,” said David Lowman, EVP of single-family business for the GSE. “With two successful STACR offerings under our belt, we are well on our way to having a scalable offering with regular issuances. We are pleased with the markets’ acceptance of these bonds.”

According to a release, about 50 broadly-diversified investors participated in the offering for the debt notes. The offering was oversubscribed and is scheduled to settle November 12. This year’s earlier STACR offering settled in July “and was well-received by the market,” Freddie Mac said.

The notes were offered to the market by Barclays Capital as co-lead manager and sole bookrunner and by Morgan Stanley as co-lead manager. Nomura, RBS, and Wells Fargo each served as co-managers.

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