Freddie Prices $500M of SUBS

Freddie Mac has priced a $500 million cash offering of its new 5.00% subordinated debt security, Freddie SUBS, at 99.013.The security, due Dec. 14, 2018, was priced to yield 5.111%, 58.5 basis points over 10-year U.S. Treasury notes, Freddie Mac reported. The government-sponsored enterprise also announced final pricing information for the Freddie Mac securities purchased in exchange for the new Freddie SUBS. It accepted approximately $1.505 billion in principal amount of three securities under the exchange offers, of which $836,000 will be purchased for cash. The remaining securities, totaling approximately $1.504 billion, will be exchanged for approximately $1.574 billion of the new 12-year Freddie SUBS, the company said. Underwriting the new SUBS issue is a syndicate of dealers headed by Bear Stearns & Co. and Merrill Lynch, Pierce, Fenner & Smith Inc., the GSE said. Freddie Mac can be found online at http://www.freddiemac.com.