Fannie Mae Launches Cash Tender Offer for Connecticut Avenue Securities
Fannie Mae’s Tender Offer for Connecticut Avenue Securities
On September 28, 2026, Fannie Mae (OTCQB: FNMA) publicly announced a significant financial initiative, commencing fixed-price cash tender offers for the purchase of all Connecticut Avenue Securities® (CAS) Notes. This announcement is critical for investors holding the mentioned securities, as it offers an opportunity to liquidate their holdings under specified terms before the forthcoming expiration date.
Overview of the Offering
Fannie Mae's tender offers will cover a variety of CAS Notes, which are vital instruments in the agency's funding strategies. The tender offers are effective immediately and will remain open until 5:00 PM, New York City time, on October 2, 2026, unless a decision is made to either extend or terminate them prematurely. Investors interested in cashing out will need to adhere to the outlined procedures in the Offer Documents released alongside this announcement.
Classes of Notes Included
The offers cover several classes of CAS Notes issued from different REMIC Trusts. Each Note class comes with specific details such as original principal balances and the tender offer consideration per $1,000 of original principal amount. Notably, the tender offer considerations vary per class, reflecting their market conditions. A summary of the specific Notes included in the offers is provided below:
| Name of Security | REMIC Trust | Original Principal Balance | Tender Offer Consideration |
|---|---|---|---|
| ----- | ---- | ------ | ------ |
| Series 2022-R08, Class 1M-2 Notes | Connecticut Avenue Securities Trust 2022-R08 | $125,973,000.00 | $1,022.10 |
| Series 2023-R01, Class 1M-1 Notes | Connecticut Avenue Securities Trust 2023-R01 | $76,275,000.00 | $1,016.80 |
| Series 2023-R01, Class 1M-2 Notes | Connecticut Avenue Securities Trust 2023-R01 | $247,164,000.00 | $1,033.70 |
| Series 2023-R02, Class 1M-1 Notes | Connecticut Avenue Securities Trust 2023-R02 | $113,906,311.00 | $1,016.20 |
| Series 2023-R04, Class 1M-1 Notes | Connecticut Avenue Securities Trust 2023-R04 | $377,100,000.00 | $1,017.50 |
| Series 2023-R04, Class 1M-2 Notes | Connecticut Avenue Securities Trust 2023-R04 | $188,550,000.00 | $1,041.40 |
| Series 2023-R05, Class 1M-2 Notes | Connecticut Avenue Securities Trust 2023-R05 | $230,559,000.00 | $1,036.70 |
| Series 2023-R06, Class 1M-2 Notes | Connecticut Avenue Securities Trust 2023-R06 | $231,342,000.00 | $1,028.00 |
Auction Dynamics and Procedures
Holders of these Notes need to validly tender their holdings by the expiration date to receive the Tender Offer Consideration. Besides the provided cash incentive, investors will also earn accrued interest from the last payment date until the anticipated settlement date of October 6, 2026. Furthermore, potential buyers willing to utilize the Notice of Guaranteed Delivery for tendering are expected to see their Notes purchased by October 7, 2026.
Contacts and Further Information
Those interested in specific details regarding the tender offer should refer to the Offer Documents. For assistance, holders of the Notes can contact Global Bondholder Services Corporation, the designated tender agent, for inquiries or to obtain copies of the Offer Documents. Prospective investors inquiring about the terms can reach out to BofA Securities, Inc. or Citigroup Global Markets Inc., engaged as dealer managers for this offering, through the provided contact numbers.
Conclusion
This tender offer by Fannie Mae is a critical moment for stakeholders in the bond market, particularly those holding CAS Notes. Investors are advised to review the Offer Documents thoroughly to understand the implications and opportunities presented by this offering fully. As these markets become ever more dynamic, staying informed and proactive will be essential for effectively managing investments in such securities.
Topics Financial Services & Investing）
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