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Repurchase Operation Overview: Callable Notes
| Debt Securities Program Feature |
Description |
| Public Notice |
A two business day public
notice will be provided via the Freddie Mac website, designated dealers
and major newswires. In rare circumstances, less advance notice (at least
one hour) may be given. Advance notice will include target issues, maximum
repurchase amount, offering submission deadline, and settlement date. |
| Response Time to Dealer |
Freddie Mac expects to provide
an automated confirmation of trade to participating dealers as soon as possible
following completion of the repurchase operation. |
| Public Results Announcement |
Amount repurchased by issue
and overall offer-to-cover ratio will be posted within 15 minutes after
the offering submission deadline. |
| Issue Eligibility |
All U.S. Dollar denominated,
senior callable notes with an outstanding amount of $250 million or more
are eligible for repurchase. Callable notes will be eligible for repurchase
both before and after their call date. |
| Lockout Period |
Freddie Mac will not conduct
a repurchase of callable notes between three business days prior to an announcement
of a Syndicated Callable Note issuance and the settlement date. Freddie
Mac will not repurchase callable notes during the three-month period following
their respective issuance or reopening. |
| Execution Methodology |
Dealers submit offers, expressed
in yield-to-maturity in increments of one-tenth of a basis point, via the
Internet. Minimum offer size is $1 million, with increments of $1 million. |
| Offerings Per Issue |
Multiple offerings will be
permitted for each issue. |
| Award Process |
After the offering submission
deadline, Freddie Mac will consider all offerings and will order the offerings
from the lowest to the highest offering price. Offerings may be accepted
in full, accepted in part or rejected. |
| Dealer Group |
ABN AMRO, Barclays Capital,
Bear, Stearns & Co. Inc., Credit Suisse First Boston, Deutsche Bank
Securities Inc., First Tennessee, Goldman Sachs, Greenwich Capital Markets,
HSBC, Lehman Brothers, Merrill Lynch, J.P. Morgan & Co., Morgan Stanley,
Citigroup Global Markets, Inc., and UBS Warburg. |
| Non-Programmatic Repurchases |
Freddie Mac expects to continue
repurchasing any outstanding medium term and callable notes on a negotiated
basis in the secondary market, irrespective of the periodic repurchase operations. |
| Settlement |
All trades will be settled
at T+1. |
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