MCLEAN, VA—Freddie Mac has priced a new Structured Agency Credit Risk (STACR) transaction totaling $770 million. It is the fifth STACR offering this year where Freddie Mac is transferring a portion of its credit risk to private investors.

The GSE first introduced the structure last year and then kicked off 2014 with its first transaction in February. Since then the GSE has made a few tweaks to the product. Last month, for example, it completed its STACR of loans with LTVs of above 80% and up to 95%.

It has listed the STACR bonds on the Global Exchange Market of the Irish Stock Exchange. In addition, the GSE has preliminary designations of credit quality from the National Association of Insurance Commissioners for all three HQ2 bonds.

"This offering builds on the STACR platform and shows the flexibility Freddie Mac has as an issuer as we are selling only the HQ Series collateral in this offering for the first time instead of doing it at the same time as our STACR DN Series," Kevin Palmer, vice president of single-family strategic credit costing and structuring for Freddie Mac, said in a prepared statement.

Pricing for the most recent offering was one-month LIBOR plus a spread of 145 basis points for the M-1 class. Pricing for the M-2 class was one month LIBOR plus a spread of 220 basis points. Pricing for the M-3 class was one month LIBOR plus a spread of 375 basis points.

Barclays and RBS Securities are the co-lead managers and joint bookrunners. J.P. Morgan, Credit Suisse and Bank of America Selling Group served as co-managers, and Bonwick Capital as a selling group member.