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OFFERING CIRCULAR SUPPLEMENT
(to Offering Circular Dated December 30, 1993)
Freddie Mac
$35,000,000 Federal Home Loan Mortgage Corporation 6.57% Debentures Due 2000
Redeemable at the option of Freddie Mac, commencing September 18, 1997
The 6.57% Debentures Due 2000 (the "Debentures") are unsecured general obligations of the Federal Home Loan Mortgage Corporation ("Freddie Mac") issued pursuant to Freddie Mac's Debentures, Medium-Term Notes and Discount Notes Offering Circular dated December 30, 1993 (the "Offering Circular"). The Debentures will have the terms and characteristics set forth in the Offering Circular and in this Supplement. Capitalized terms used herein and not otherwise defined herein have the meanings given them in the Offering Circular. This Supplement should be read in conjunction with the Offering Circular and with Freddie Mac's Information Statement dated March 31, 1995, its Information Statement Supplements dated May 18, 1995 and August 15, 1995 and any other supplements to such Information Statement. See "Availability of Information and Incorporation by Reference" in the Offering Circular. Proceeds to Price to Underwriting Freddie Mac Public (1) Discount (1)(2) 100.00% .20% 99.80% Per Debenture . . . . . . . . . . $35,000,000 $70,000 $34,930,000 Total . . . . . . . . . . . . . . . . . (1) (2) Plus accrued interest, if any, from September 18, 1995. Before deducting expenses payable by Freddie Mac estimated at $5,000.
It is expected that the Debentures, in book-entry form, will be available for deposit at any Federal Reserve Bank on or about September 18, 1995, against payment therefore in immediately available funds. The Debentures are not suitable investments for all investors. In particular, no investor should purchase the Debentures unless the investor understands and is able to bear the redemption, yield, market and liquidity risks associated with the Debentures. See "Certain Investment Considerations" in this Supplement. The Debentures are obligations of Freddie Mac only. The Debentures, including any interest thereon, are not guaranteed by the United States and do not constitute debts or obligations of the United States or any agency or instrumentality of the United States other than Freddie Mac. Income on the Debentures has no exemption under federal law from federal, state or local taxation. The Debentures are exempt from the registration requirements of the Securities Act of 1933 and are “exempted securities” within the meaning of the Securities Exchange Act of 1934.
Morgan Keegan & Co., Inc.
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Offering Circular Supplement Dated September 12, 1995
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DESCRIPTION OF THE DEBENTURES Principal Amount: Issue Date: Maturity Date: Optional Redemption: $35,000,000 September 18, 1995 September 18, 2000 On or after September 18, 1997, Freddie Mac may, at its option, upon notice of not less than 10 Business Days, redeem all (but not less than all) of the Debentures at 100% of their principal amount plus accrued interest to the Redemption Date 6.57% per annum Semiannually, in arrears, on each March 18 and September 18, commencing March 18, 1996 At maturity, or upon redemption Debentures will be issued and must be maintained and transferred in minimum original principal amounts of $5,000 and additional increments thereof 3134A0LA8
Interest Rate: Payment of Interest:
Payment of Principal: Minimum Principal Amounts:
CUSIP Number:
NOTICE OF REDEMPTION Notwithstanding the statement in the Offering Circular and provisions in the Debenture and Medium-Term Note Agreement that notice of any redemption of Debentures subject to redemption at the option of Freddie Mac prior to their respective Maturity Dates shall be given to the Holders of such Debentures not less than 30 nor more than 60 days prior to a Redemption Date, notice of any redemption of the Debentures offered by this Supplement shall be given to the Holders of the Debentures not less than 10 Business Days nor more than 60 calendar days prior to the Redemption Date. CERTAIN INVESTMENT CONSIDERATIONS The Debentures entail certain risks. The Debentures may be redeemed by Freddie Mac, at 100% of their principal amount plus accrued interest, at any time on or after September 18, 1997. An investor should consider the factors that affect the market value of the Debentures, including the fact that the optional redemption feature may inhibit the market value that the Debentures otherwise would have. If Freddie Mac redeems the Debentures when prevailing interest rates are relatively low, an investor may not be able to reinvest the redemption proceeds in comparable securities at an effective interest rate as high as that of the Debentures. The secondary market for, and the market value of, the Debentures will be affected by a number of factors independent of the creditworthiness of Freddie Mac, including the level and direction of interest rates, the remaining period to maturity of the Debentures, Freddie Mac's right to redeem the Debentures, the aggregate principal amount of the Debentures and the availability of comparable investments. In addition, the market value of the Debentures may be affected by numerous other interrelated factors, including factors that affect the U. S. corporate debt market generally and Freddie Mac specifically. There is no assurance that a secondary market for the Debentures will develop, that any secondary market will continue, or that the price at which an investor can sell the Debentures will enable the investor to realize a desired yield on that investment. Because the Debentures are redeemable by Freddie
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Mac on or after September 18, 1997, the Debentures may have less liquidity than otherwise similar Debentures without this feature. The market value of the Debentures is likely to fluctuate; such fluctuations may be significant and could result in significant losses to investors.
PLAN OF DISTRIBUTION Subject to the terms and conditions set forth in the Underwriting Agreement between Freddie Mac and Morgan Keegan & Co., Inc. (the “Underwriter"), Freddie Mac has agreed to sell, and the Underwriter has agreed to purchase, all of the Debentures offered hereby, if any are sold and purchased. Freddie Mac has been advised by the Underwriter that it proposes initially to offer the Debentures to the public at the offering price set forth on the cover page of this Supplement and to certain dealers at such price less a concession not in excess of .150% of the principal amount of the Debentures and that the Underwriter may allow and such dealers may reallow a concession not in excess of .125% of the principal amount on sales to certain other dealers. After the initial public offering, the public offering price and such concessions may be changed by the Underwriter. CAPITALIZATION Freddie Mac's capitalization as of June 30, 1995 is set forth in a capitalization table in Freddie Mac's Information Statement Supplement dated August 15, 1995 to its Information Statement dated March 31, 1995. Freddie Mac engages in transactions affecting stockholders' equity from time to time and issues or retires debentures, notes and other debt obligations on an ongoing basis. Accordingly, on any date subsequent to June 30, 1995, stockholders' equity may differ, and the amount of debt obligations outstanding will differ, and may differ substantially, from the figures contained in the capitalization table set forth in the Information Statement Supplement. CERTAIN FEDERAL INCOME TAX CONSEQUENCES Freddie Mac will report income on the Debentures to the Internal Revenue Service (the "Service") and the Holders based, in part, on final Treasury Regulations under Sections 1271-1275 of the Internal Revenue Code (the "OID Regulations"). The OID Regulations apply to debt instruments issued on or after April 4, 1994 and generally adopt the rules contained in the Proposed OID Regulations (as described under "Certain Federal Income Tax Consequences" in the Offering Circular). The OID Regulations allow a Beneficial Owner, on either a cash or accrual basis of accounting, to elect to include in gross income all interest that accrues on a debt instrument by using the constant yield method. LEGALITY OF INVESTMENT; REGULATORY CONSTRAINTS Investors should consult their legal advisors to determine whether and to what extent the Debentures constitute legal investments for such investors. An institution under the jurisdiction of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision, the National Credit Union Administration, the Department of the Treasury or any other federal or state agency with similar authority should review any applicable regulations, policy statements and guidelines before purchasing or pledging any Debentures. See "Legality of Investment" and "Regulatory Constraints" in the Offering Circular.
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