Fannie Mae Announces Results of Tender Offer for Any and All of Certain CAS Notes

BY PR Newswire | AGENCY | 04/29/24 11:27 AM EDT

WASHINGTON, April 29, 2024 /PRNewswire/ -- Fannie Mae today announced the results of its fixed-price cash tender offers (each, an "Offer" and, collectively, the "Offers") for any and all of certain Connecticut Avenue Securities? (CAS) Notes listed in the table below (the "Notes") upon the terms and subject to the conditions set forth in the Offer to Purchase and related Notice of Guaranteed Delivery, each dated as of April 22, 2024 (collectively, the "Offer Documents"). Certain of the classes of Notes subject to the Offers were issued by the?REMIC trusts identified in the table below (each, a "Trust"). Fannie Mae is the holder of the ownership certificate issued by each Trust and, as a result, the sole beneficial owner of each Trust.

(PRNewsfoto/Fannie Mae)

A total of approximately $1,706 million in original principal amount of Notes were validly tendered and not validly withdrawn on or before the designated expiration time for the Offers, which was 5:00 PM New York City time on April 26, 2024. The table below sets forth the original principal balance of the Notes, the percentage of original principal amount tendered, and the original principal amount tendered in the Offers.

?

Name of Security

?

REMIC Trust (if applicable)

?

CUSIP?

?

ISIN ? ??

Original Principal Balance1?

Percentage of Original Principal Amount Tendered2

Original Principal Amount Tendered3

Connecticut Avenue Securities, Series 2017-C01, Class 1B-1 Notes

N/A

30711XEQ3

US30711XEQ34

$126,754,000

99.33?%

$125,904,000

Connecticut Avenue Securities, Series 2017-C02, Class 2B-1 Notes

N/A

30711XGQ1

?US30711XGQ16

$107,914,000

4.63?%

$5,000,000

Connecticut Avenue Securities, Series 2018-R07, Class 1B-1 Notes

Connecticut Avenue Securities Trust 2018-R07

20753QAF6

?US20753QAF63

$172,854,000

71.71?%

$123,954,000

Connecticut Avenue Securities, Series 2019-R01, Class 2B-1 Notes

Connecticut Avenue Securities Trust 2019-R01

20754FAL6

?US20754FAL67

$186,724,000

92.37?%

$172,474,000

Connecticut Avenue Securities, Series 2019-R02, Class 1B-1 Notes

Connecticut Avenue Securities Trust 2019-R02

20753KAF9

?US20753KAF93

$187,956,000

100.00?%

$187,956,000

Connecticut Avenue Securities, Series 2020-R01, Class 1M-2 Notes

Connecticut Avenue Securities Trust 2020-R01

20754CAB5

US20754CAB54

$523,509,000

99.97?%

$523,375,000

Connecticut Avenue Securities, Series 2020-R02, Class 2M-2 Notes

Connecticut Avenue Securities Trust 2020-R02

20754WAB1

US20754WAB19

$567,147,000

100.00?%

$567,147,000





$1,872,858,000

91.08?%

$1,705,810,000

1 Represents the aggregate original principal amount of the applicable Class issued on the issue date thereof, less the aggregate original principal amount of such Class repurchased by the Company pursuant to one or more prior tender offers, if applicable.
2 Rounded to the nearest hundredth of a percent.
3?Original Principal Amount tendered includes $30,000,000 of Notes tendered using the Notice of Guaranteed Delivery.

The settlement date for the Notes tendered and accepted for purchase in the Offers is expected to occur on April 30, 2024 (the "Settlement Date"). Any Notes tendered and accepted for purchase in the Offers using the Notice of Guaranteed Delivery are expected to be purchased on May 1, 2024.

BofA Securities acted as the designated lead dealer manager and Wells Fargo Securities acted as the designated dealer manager for the Offers. Fannie Mae has engaged Minority and Service-Disabled Veteran-owned Academy Securities, Inc. and Service-Disabled Veteran-owned Drexel Hamilton, LLC as advisors on the transaction. Global Bondholder Services Corporation was engaged as the tender agent and information agent for the Offers.

Related Links:
CAS Notes Tender Offer Press Release
CAS Notes Tender Offer Frequently Asked Questions

About Fannie Mae
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1-800-2FANNIE

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities of Fannie Mae, including the Notes. Nothing in this press release constitutes advice on the merits of buying or selling a particular investment. Any investment decision as to any purchase or sale of securities referred to herein must be made solely on the basis of information contained in the Offer Documents, and no reliance may be placed on the completeness or accuracy of the information contained in this press release. The Offers are not being made to holders of the Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the securities laws or blue sky laws require the Offer to be made by a licensed broker or dealer, the Offer will be deemed to be made on behalf of the Company by BofA Securities, Inc. or Wells Fargo Securities, LLC (as applicable) or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.

You should not deal in securities unless you understand their nature and the extent of your exposure to risk. You should be satisfied that they are suitable for you in light of your circumstances and financial position. If you are in any doubt you should consult an appropriately qualified financial advisor.

This release includes forward-looking statements, including statements relating to the timing and expected settlement and closing of the purchase of the Notes in a tender offer. These forward-looking statements are based on Fannie Mae's present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may turn out to be different from these statements. Factors that may lead to different results are discussed in "Risk Factors," "Forward-Looking Statements," and elsewhere in the Offer Documents and the documents incorporated by reference therein. All forward-looking statements are made as of the date of this press release, and Fannie Mae assumes no obligation to update this information.

Connecticut Avenue Securities is a registered mark of Fannie Mae. Unauthorized use of this mark is prohibited.

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SOURCE Fannie Mae

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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