Fannie Mae Prices Inaugural C-Deal

WASHINGTON, DC-Fannie Mae priced its first offering in its C-deals series – aka its Connecticut Avenue Securities platform that it began marketing last month. The $675 million note offering priced on Tuesday and will be settled on Oct. 24. The loans included in the first C-deal transaction are fixed rate, generally 30-year term, fully amortizing mortgages with LTV ratios between 60% and 80%.

Pricing for the M-1 tranche was one-month LIBOR plus a spread of 200 basis points. Pricing for the M-2 tranche was one month LIBOR plus a spread of 525 basis points. About 75 investors participated in the offering, including asset managers, mutual funds, pension funds, hedge funds, insurance companies, banks, and REITs. Fannie Mae retained the first loss and senior piece of the structure, as well as a vertical slice of the M1 and M2 tranches.