Freddie Mac has priced a $600 million Structured Agency Credit Risk debt notes offering.
Pricing for STACR Series 2017-HQA3 was one-month London Interbank Offered Rate for all three classes plus a spread of 55 basis points for the M-1 class, a spread of 235 basis points for the M-2 class and a spread of 445 basis points for the B-1 class. STACR 2017-HQA3 has a reference pool of single-family mortgages with an unpaid principal balance of about $21.6 billion, consisting of a subset of fixed-rate, single-family mortgages with an original term of 241 to 360 months purchased by Freddie Mac between Dec. 1, 2016, and March 31, 2017. The reference pool includes loans with loan-to-value ratios of 80% to 97%. Freddie Mac holds the entire senior loss risk A-H bond and the first-loss B-2H bond in the capital structure, along with part of the risk in the class M-1, M-2 and B-1 tranches.
Barclays Capital Inc. and Citigroup Global Markets Inc. are co-lead managers and joint book runners.