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McLEAN, VA-Freddie Mac is offering 20 million shares of its fixed-rate, non-cumulative perpetual preferred stock, priced at $25 a share, which would raise the tally to $500 million. The shares have a dividend rate of 6.55%. New York City-based Banc of America Securities LLC is the underwriter, and the shares are expected to be issued on Sept. 28.

The locally based government-sponsored mortgage finance company is filing an application to list the preferred stock on the NYSE. Freddie Mac notes in an SEC filing that, “until this offering, there has been no public market for [its] preferred stock.” The filing states, “there is no assurance that the preferred stock will be approved for listing on the NYSE,” and also says that trading of the stock on the exchange “is expected to commence within a 14-day period after the initial delivery.”

Freddie Mac will have the option to redeem all or part of the shares on or after Sept. 30, 2017, at $25 a share plus accrued dividends. This offer follows a $1-billion issuance of Freddie Mac preferred shares in March.

Freddie Mac came under fire after accounting irregularities came to light in 2003. As GlobeSt.com previously reported, Anthony Piszel, formerly with Health Net Inc. and Prudential Financial Inc., was hired as EVP and CFO and charged with putting the company back on a regular quarterly reporting schedule.

During an Aug. 30 conference call reporting second-quarter 2007 financials, Richard Syron, chairman and CEO, said that Freddie Mac resumed timely quarterly financial reporting this June. The second-quarter report was released ahead of target, he noted.

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