Street Calls of the Week
WASHINGTON - Fannie Mae (OTCQB:FNMA), the $73.17 billion mortgage finance giant whose stock has surged an impressive 288% year-to-date, announced Monday it has commenced fixed-price cash tender offers to purchase any and all of certain Connecticut Avenue Securities (CAS) Notes with an aggregate original principal balance of approximately $2.25 billion. According to InvestingPro data, the company’s stock movements have been notably volatile, with significant implications for investors tracking this tender offer.
The tender offers cover 11 different classes of CAS Notes, with tender offer consideration ranging from $1,011.72 to $1,096.41 per $1,000 original principal amount. The offers will expire at 5:00 p.m. New York City time on Friday, October 3, 2025, unless extended or terminated earlier. For investors following this development, InvestingPro offers comprehensive financial analysis and real-time metrics through its Pro Research Report, available for over 1,400 US stocks including Fannie Mae.
Notes included in the offers range from the Connecticut Avenue Securities Series 2017-C03 Class 1B-1 Notes to the Series 2022-R08 Class 1M-1 Notes. Some of the notes were issued by Connecticut Avenue Securities trusts, of which Fannie Mae is the sole beneficial owner.
Holders who validly tender their notes by the expiration time will receive the tender offer consideration plus accrued and unpaid interest from the last interest payment date to, but not including, the settlement date, which is expected to be October 7, 2025.
Fannie Mae has engaged BofA Securities as the lead dealer manager and Wells Fargo Securities as the designated dealer manager for the offers. Global Bondholder Services Corporation will serve as the tender agent and information agent. With the company’s current financial health score rated as "FAIR" by InvestingPro, and short-term obligations exceeding liquid assets, investors should closely monitor this transaction’s impact on the company’s balance sheet.
The tender offer consideration will incorporate the monthly Certificate Percentages available on September 25, 2025, according to the company’s statement based on a press release.
Notes tendered using the Notice of Guaranteed Delivery and accepted for purchase are expected to be purchased on October 8, 2025, though payment of accrued interest will only be made to, but not including, the settlement date.
In other recent news, Fannie Mae has begun marketing a sale of reperforming loans valued at approximately $560.5 million. This move is part of the company’s ongoing strategy to reduce its retained mortgage portfolio. The sale includes around 3,058 loans, with bids due in early September 2025. Additionally, Deutsche Bank has initiated coverage on Fannie Mae stock with a Buy rating and set a price target of $20.00, citing attractive upside potential. Meanwhile, B.Riley has also started coverage on Fannie Mae, assigning a Neutral rating with a $10.00 price target. These recent developments reflect varied analyst perspectives on the company’s stock.
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