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Fannie Mae Launches Cash Tender Offers for CAS Notes

Fannie Mae, a key player in the U.S. mortgage market, has announced the initiation of a series of cash tender offers aimed at purchasing all kinds of Connecticut Avenue Securities® (CAS) Notes. These offers began on May 22, 2025, and are a crucial part of the company’s strategy to optimize its financial management and enhance shareholder value.

The cash tender offers are designed to acquire CAS Notes that were issued by several REMIC trusts, with Fannie Mae holding every beneficial certificate of each trust, effectively positioning itself as the sole owner. The company aims to improve its balance sheet and manage its assets effectively through this strategic initiative.

Details of the Tender Offers

The fixed-price cash tender offers will close on May 29, 2025, at 5:00 PM New York City time. However, holders are encouraged to act promptly as these offers might be extended or terminated earlier than anticipated. Interested holders can withdraw their notes at any time before the closing deadline by following the procedures outlined in the Offer Documents.

Specific CAS classes detailed in the recent announcement include:

• - Connecticut Avenue Securities, Series 2017-C01, Class 1M-2 Notes (CUSIP: 30711XEP5) – Original Principal Balance: $118,854,281.00, Tender Offer Consideration: $1,035.70.
• - Connecticut Avenue Securities, Series 2017-C02, Class 2M-2 Notes (CUSIP: 30711XGP3) – Original Principal Balance: $25,780,837.00, Tender Offer Consideration: $1,042.90.
• - Connecticut Avenue Securities, Series 2018-C06, Class 1B-1 Notes (CUSIP: 30711X3M4) – Original Principal Balance: $64,944,000.00, Tender Offer Consideration: $1,091.30.

These are just examples from a larger list that highlights a total original principal balance reaching approximately $1.89 billion across various classes.

Management and Operations

Fannie Mae has appointed BofA Securities as the lead dealer manager along with Wells Fargo Securities participating as a designated dealer manager for these offers. Global Bondholder Services Corporation will act as both the tender and information agent, providing crucial support to ensure a smooth process for participants.

Details regarding the procedures for tendering notes can be found in the Offer Documents. Holders desiring to obtain these documents can reach out to Global Bondholder Services Corporation for assistance at 855-654-2015 (toll-free) or via email at [email protected].

Looking Ahead

Fannie Mae indicates that the expected settlement for the purchases will occur on June 2, 2025. Notes tendered using the Notice of Guaranteed Delivery will likely be processed on June 3, 2025. It's important for investors to note that any accrued interest will be payable only up to the settlement date.

As a publicly traded entity, Fannie Mae remains open about its operations, emphasizing the importance of transparency in the offers disclosed. The company also appreciates the need for comprehensive understanding among noteholders regarding the risks involved in securities trading, urging them to consult financial advisors for informed decisions.

The company’s moves reflect a broader strategy to bolster its asset management operations and ensure sustainable performance in the challenging U.S. housing finance environment.

For more details about Fannie Mae’s initiatives, updates, and FAQs related to the tender offers, investors can visit the Fannie Mae newsroom online.

In conclusion, this proactive approach indicates Fannie Mae's commitment to optimizing its operational management, paving the way for an efficient asset portfolio amid a volatile financial landscape.