MCLEAN, Va., Jan. 10 /PRNewswire-FirstCall/ -- Freddie Mac (NYSE:FRE) today announced that it has priced $1.1 billion of its fixed-rate non- cumulative perpetual preferred stock, CUSIP 313400673. The shares are expected to be issued on January 16, 2007, subject to the satisfaction of customary closing conditions.
The 44 million shares of preferred stock are being offered to investors at $25 per share with a dividend rate of 5.57 percent. Freddie Mac will have the option to redeem all or part of the shares on or after December 31, 2011, at $25 per share plus accrued dividends.
The preferred stock was offered via a syndicate of dealers headed by Goldman, Sachs & Co. and JPMorgan. Co-managers of the transaction are Banc of America Securities LLC, Lehman Brothers, Merrill Lynch & Co., Morgan Stanley and UBS Investment Bank. An application has been filed to list the preferred stock on the New York Stock Exchange.
Freddie Mac is a stockholder-owned company established by Congress in 1970 to support homeownership and rental housing. Freddie Mac fulfills its mission by purchasing 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 for one in six homebuyers and more than four million renters in America.