Freddie Prices Subs Issue

Freddie Mac has priced a 10-year bullet subordinated debt security in the amount of $1.25 billion.The 5.75% Freddie Subs issue (CUSIP 3134A4ZY3), due June 27, 2016, was priced at 99.303 to yield 5.843%, or 63.5 basis points over the on-the-run 5.125% 10-year Treasury security due May 15, 2016. Lead managers for the transaction are Lehman Brothers and Merrill Lynch. Freddie Mac can be found on the Web at http://www.freddiemac.com.