Fannie Mae (OTCQB: FNMA) announced Monday that it has commenced fixed-price cash tender offers for the purchase of any and all of the Connecticut Avenue Securities Notes it listed in a release.
The GSC said that certain of the classes of notes subject to the offers were issued by certain trusts. Fannie Mae is the holder of the owner certificate issued by each trust and, as a result, is the sole beneficial owner of each Trust.
Connecticut Avenue Securities are Fannie Mae’s benchmark credit risk transfer program that allows private investors to buy securities linked to the performance of single-family mortgage loans. Those notes, often structured as Real Estate Mortgage Investment Conduits (REMICs) or direct debt, transfer default risk from Fannie Mae to the market.
Fannie Mae said the offers will expire at 5 p.m. Eastern time on Friday, Feb. 27, unless extended or earlier terminated. Fannie Mae said the notes tendered may be withdrawn at any time at or before the expiration time.
Fannie Mae said it has engaged BofA Securities as the designated lead dealer manager and Wells Fargo Securities as the designated dealer manager for the offers. Global Bondholder Services Corp. will serve as the tender agent and information agent for the offers, Fannie Mae said.
This table summarizes the material pricing terms of the offers.
| Name of Security | Trust (if applicable) | CUSIP | ISIN | Original Principal Balance * | Tender Offer Consideration (per $1,000 original principal amount) |
| Connecticut Avenue Securities, Series 2017-C02, Class 2B-1 Notes | N/A | 30711XGQ1 | US30711XGQ16 | $102,714,000.00 | $1,053.50 |
| Connecticut Avenue Securities, Series 2017-C02, Class 2M-2 Notes | N/A | 30711XGP3 | US30711XGP33 | $20,205,297.00 | $1,030.60 |
| Connecticut Avenue Securities, Series 2017-C02, Class 2M-2C Notes | N/A | 30711XGN8 | US30711XGN84 | $31,757,757.00 | $1,030.60 |
| Connecticut Avenue Securities, Series 2017-C03, Class 1M-2 Notes | N/A | 30711XJX3 | US30711XJX30 | $3,170,000.00 | $1,025.20 |
| Connecticut Avenue Securities, Series 2017-C03, Class 1M-2C Notes | N/A | 30711XJV7 | US30711XJV73 | $25,286,999.00 | $1,025.20 |
| Connecticut Avenue Securities, Series 2017-C04, Class 2M-2 Notes | N/A | 30711XLT9 | US30711XLT99 | – | $1,027.00 |
| Connecticut Avenue Securities, Series 2017-C05, Class 1B-1 Notes | N/A | 30711XNW0 | US30711XNW01 | $50,455,558.00 | $1,042.50 |
| Connecticut Avenue Securities, Series 2017-C06, Class 1B-1 Notes | N/A | 30711XQW7 | US30711XQW73 | $34,992,596.00 | $1,054.00 |
| Connecticut Avenue Securities, Series 2017-C06, Class 2B-1 Notes | N/A | 30711XSW5 | US30711XSW55 | $19,121,000.00 | $1,058.00 |
| Connecticut Avenue Securities, Series 2017-C06, Class 1M-2 Notes | N/A | 30711XQX5 | US30711XQX56 | $18,540,000.00 | $1,027.50 |
| Connecticut Avenue Securities, Series 2017-C06, Class 1M-2C Notes | N/A | 30711XQV9 | US30711XQV90 | $13,179,089.00 | $1,027.50 |
| Connecticut Avenue Securities, Series 2017-C06, Class 2M-2 Notes | N/A | 30711XSX3 | US30711XSX39 | $77,485,969.00 | $1,030.00 |
| Connecticut Avenue Securities, Series 2017-C06, Class 2M-2C Notes | N/A | 30711XSV7 | US30711XSV72 | $8,641,811.00 | $1,030.00 |
| Connecticut Avenue Securities, Series 2018-C03, Class 1B-1 Notes | N/A | 30711XJ62 | US30711XJ629 | $63,617,000.00 | $1,067.70 |
| Connecticut Avenue Securities, Series 2018-C04, Class 2B-1 Notes | N/A | 30711XR30 | US30711XR309 | $17,000,000.00 | $1,089.50 |
| Connecticut Avenue Securities, Series 2018-C04, Class 2M-2 Notes | N/A | 30711XR63 | US30711XR630 | $73,579,187.00 | $1,037.80 |
| Connecticut Avenue Securities, Series 2018-C05, Class 1B-1 Notes | N/A | 30711XY32 | US30711XY321 | $24,515,000.00 | $1,087.50 |
| Connecticut Avenue Securities, Series 2018-C06, Class 1B-1 Notes | N/A | 30711X3M4 | US30711X3M42 | $57,469,000.00 | $1,080.60 |
| Connecticut Avenue Securities, Series 2018-C06, Class 2B-1 Notes | N/A | 30711X5V2 | US30711X5V23 | $15,107,000.00 | $1,089.40 |
| Connecticut Avenue Securities, Series 2018-R07, Class 1B-1 Notes | Connecticut Avenue Securities REMIC Trust 2018-R07 | 20753QAF6 | US20753QAF63 | $48,900,000.00 | $1,070.00 |
| Connecticut Avenue Securities, Series 2022-R04, Class 1M-1 Notes | Connecticut Avenue Securities REMIC Trust 2022-R04 | 20753YCH3 | US20753YCH36 | $59,376,000.00 | $1,011.30 |
| Connecticut Avenue Securities, Series 2023-R01, Class 1M-1 Notes | Connecticut Avenue Securities REMIC Trust 2023-R01 | 207932AA2 | US207932AA28 | $429,855,000.00 | $1,025.70 |
| Connecticut Avenue Securities, Series 2023-R02, Class 1M-1 Notes | Connecticut Avenue Securities REMIC Trust 2023-R02 | 20755AAB8 | US20755AAB89 | $375,337,000.00 | $1,025.00 |
*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. Does not include the original principal balance of the ineligible securities.
