Freddie Prices Preferred Stock

Freddie Mac has announced the pricing of $6 billion of fixed- to floating-rate, nonconvertible, noncumulative perpetual preferred stock.The 240 million shares of preferred stock (CUSIP: 313400624) are being offered to investors at $25 per share with a fixed dividend rate of 8.375% through Dec. 31, 2012, the government-sponsored enterprise said. Thereafter, the dividend rate will be the three-month London interbank offered rate plus 416 basis points, or 8.375%, whichever is higher. Freddie Mac said it will have the option to redeem some or all of the shares on Dec. 31, 2012, and on each fifth anniversary thereafter at $25 per share plus accrued dividends. The preferred stock is being offered via a syndicate of dealers headed by Lehman Brothers Inc. and Goldman, Sachs & Co. Freddie Mac can be found online at http://www.freddiemac.com.