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

By klrw460 April 29, 2024

Fannie Mae (FNMA/OTCQB) has recently declared the outcomes of its fixed-price cash tender offers for a full range of specific Connecticut Avenue Securities® (CAS) Notes as outlined in the Offer to Purchase and related Notice of Guaranteed Delivery, both issued on April 22, 2024. These offers apply to several classes of Notes that were released by REMIC trusts, with Fannie Mae holding the ownership certificates and therefore being the exclusive beneficial owner of these trusts.

The offers closed with approximately $1.706 billion in original principal amount of Notes being validly tendered and not withdrawn by the deadline of 5:00 PM New York City time on April 26, 2024. Details regarding the original principal balance of the Notes, the proportion of the original principal amount tendered, and the specific amounts tendered are provided in the accompanying table.

Notable securities and their responses include:

  • Connecticut Avenue Securities, Series 2017-C01, with nearly all of its principal tendered.
  • Series 2019-R02, and 2020-R02 both saw 100% of their principal amounts tendered.
  • Less participation was seen in the Series 2017-C02 with only a small fraction tendered.

The settlement of the tendered Notes is scheduled for April 30, 2024, with those tendered using the Notice of Guaranteed Delivery set for purchase on May 1, 2024.

The transaction was managed by BofA Securities as the lead dealer manager, with Wells Fargo Securities also acting as a dealer manager. Fannie Mae employed Academy Securities, Inc. and Drexel Hamilton, LLC, both minority and service-disabled veteran-owned businesses, as advisors. Global Bondholder Services Corporation served as the tender and information agent for these offers.

For more information, read the original press release from: