PRICING SUPPLEMENT DATED May 18, 2001
(to Offering Circular Dated January 18, 2001)
$10,000,000
Freddie Mac
Variable Rate Medium-Term Notes Due June 6, 2011
Redeemable periodically, beginning June 6, 2002
Issue Date:
Maturity Date:
Subject to Redemption:
Redemption Date(s):
Interest Rate Per Annum:
Principal Payment:
CUSIP Number:
June 6, 2001
June 6, 2011
Yes. The Medium-Term Notes are redeemable at our option, upon notice of
not less than 5 Business Days, at a price of 100% of the principal amount,
plus accrued interest to the Redemption Date. We will redeem all of the
Medium-Term Notes if we exercise our option.
Quarterly on the 6th day of June, September, December and March,
commencing June 6, 2002
See “Description of the Medium-Term Notes” herein
At maturity, or upon redemption
312923K87
You should read this Pricing Supplement together with Freddie Mac’s Debentures, Medium-Term Notes and
Discount Notes Offering Circular, dated January 18, 2001 (the “Offering Circular”), and all documents that are
incorporated by reference in the Offering Circular, which contain important detailed information about the MediumTerm Notes and Freddie Mac. See “Available Information” in the Offering Circular. Capitalized terms used in this
Pricing Supplement have the meanings we gave them in the Offering Circular, unless we specify otherwise.
The Medium-Term Notes may not be suitable investments for you. You should not purchase the
Medium-Term Notes unless you understand and are able to bear the redemption, yield, market, liquidity and
other possible risks associated with the Medium-Term Notes. You should read and evaluate the discussion of
risk factors (especially those risk factors that may be particularly relevant to this security) that appears in the
Offering Circular under “Risk Factors” before purchasing any of the Medium-Term Notes.
The Medium-Term Notes, including any interest or return of discount on the Medium-Term Notes, are
not guaranteed by and are not debts or obligations of the United States or any federal agency or instrumentality
other than Freddie Mac.
Proceeds to
Freddie Mac
Underwriting
Price to
(1)(3)
Discount (2)
Public (1)(2)
99.99%
.01%
100%
Per Medium-Term Note
$9,999,000
$1,000
$10,000,000
Total
(1)
(2)
(3)
Plus accrued interest, if any, from June 6, 2001.
See “Distribution Arrangements” in the Offering Circular for additional information concerning price to public
and underwriting compensation.
Before deducting expenses payable by Freddie Mac estimated at $5,000.
Credit Suisse First Boston
2
DESCRIPTION OF THE MEDIUM-TERM NOTES
INTEREST:
Applicable Interest Rate Index:
Index Currency:
Index Maturity:
Designated Telerate Page:
Reset Dates:
Determination Dates:
Spread:
Interest Rate:
Initial Interest Rate:
Cap:
Floor:
Day Count Convention:
Payment of Interest:
LIBOR ("USD LIBOR")
U.S. Dollars
3-Month
3750
Quarterly, on each March 6, June 6, September 6 and December 6,
commencing September 6, 2001
The second London Banking Day preceding the applicable Reset
Date
Plus 80 basis points (+0.80 percentage points)
80 basis points above USD LIBOR (as defined in the Offering
Circular) for the Index Maturity. The interest rate will be adjusted
on each Reset Date to reflect USD LIBOR for the Index Maturity as
of the applicable Determination Date.
The interest rate for the Debt Securities for the first Interest
Payment Period will be equal to USD LIBOR for the Index Maturity
two London Banking Days prior to June 6, 2001, plus 80 basis
points, subject to a cap of 7.50%.
7.50%
0.00%
30/360
Quarterly, in arrears, on the 6th day of each March, June,
September and December, commencing September 6, 2001
RISK FACTORS
An investment in the Medium-Term Notes entails certain risks not associated with an investment in
conventional fixed rate debt securities. See “Risk Factors” generally, and “Various Factors Could Adversely Affect the
Trading Value and Yield of Your Securities,” in the Offering Circular. The interest rate of the Medium-Term Notes
Date will be equal to LIBOR for the Index Currency at the Index Maturity plus a Spread of 80 basis points (0.80
percentage points), subject to a cap of 7.50% as described above. Investors should consider the risk that the variable
interest rate on the Medium-Term Notes will be less than that payable on a conventional fixed rate debt security issued
by Freddie Mac at the same time.
The secondary market for, and the market value of, the Medium-Term Notes will be affected by a number of
factors independent of the creditworthiness of Freddie Mac, including the level and direction of interest rates, the
variable rate of interest payable on the Medium-Term Notes, the anticipated level and potential volatility of LIBOR for
the Index Currency at the Index Maturity, the method of calculating LIBOR for the Index Currency at the Index
Maturity, the time remaining to the maturity of the Medium-Term Notes, the aggregate principal amount of the MediumTerm Notes and the availability of comparable instruments. The level of LIBOR for the Index Currency at the Index
Maturity depends on a number of interrelated factors, including economic, financial and political events, over which
Freddie Mac has no control. The following table, showing the level of LIBOR for the Index Currency at the Index
Maturity in effect for the hypothetical Determination Dates listed below, illustrates the variability of that rate:
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3
Historical Levels of USD 3-Month LIBOR
Hypothetical
Determination
Date
06/04/1991
09/04/1991
12/04/1991
03/04/1992
06/04/1992
09/04/1992
12/04/1992
03/04/1993
06/04/1993
09/04/1993
12/04/1993
03/04/1994
06/04/1994
09/04/1994
3-Month
LIBOR %
Hypothetical
Determination
Date
3-Month
LIBOR %
6.1300
5.6875
4.9375
4.3125
4.0625
3.4375
3.8125
3.1875
3.3125
3.1875
3.5000
3.8750
4.6250
5.0000
12/04/1994
03/04/1995
06/04/1995
09/04/1995
12/04/1995
03/04/1996
06/04/1996
09/04/1996
12/04/1996
03/04/1997
06/04/1997
09/04/1997
12/04/1997
03/04/1998
6.3750
6.2500
6.0000
5.8750
5.8125
5.2851
5.5351
5.6367
5.5000
5.5546
5.8125
5.7187
5.9375
5.6875
Hypothetical
Determination
Date
3-Month
LIBOR %
06/04/1998
09/04/1998
12/04/1998
03/04/1999
06/04/1999
09/04/1999
12/04/1999
03/04/2000
06/04/2000
09/04/2000
12/04/2000
03/04/2001
5.6875
5.5937
5.2184
5.0300
5.0975
5.5275
6.1237
6.1200
6.8512
6.6537
6.8043
6.8043
The historical experience of LIBOR for the Index Currency at the Index Maturity should not be taken as an
indication of the future performance of LIBOR for the Index Currency at the Index Maturity during the term of the
Medium-Term Notes. Fluctuations in the level of LIBOR for the Index Currency at the Index Maturity make the
Medium-Term Notes interest rates difficult to predict and can result in actual interest rates to investors that are lower
than anticipated. In addition, historical interest rates are not necessarily indicative of future interest rates. Fluctuations
in interest rates and interest rate trends that have occurred in the past are not necessarily indicative of fluctuations that
may occur in the future, which may be wider or narrower than those that have occurred historically.
OFFERING:
1.
2.
3.
4.
5.
6.
Pricing date:
Method of Distribution:
Concession:
Reallowance:
Underwriter:
Underwriter’s Counsel:
OTHER SPECIAL TERMS
May 18, 2001
x Principal
Agent
N/A
N/A
Credit Suisse First Boston Corporation
Sidley Austin Brown & Wood LLP
None
x
Yes; as follows:
In connection with the issuance of the Medium-Term Notes, the
Underwriter may receive compensation in connection with a related
swap transaction Freddie Mac has entered into with an affiliate of the
Underwriter. See "Distribution Arrangements" in the Offering Circular.
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