FreddieMac.com

Freddie Mac Prices $212 Million Multifamily K-Deal, K-J11

MCLEAN, VA--(Marketwired - Jan 31, 2017) - Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates) that are backed by underlying collateral consisting of supplemental multifamily mortgages. The company expects to issue approximately $212 million in K Certificates (K-J11 Certificates), which are expected to settle on or about February 15, 2017.

K-J11 Pricing

Class Principal/Notional Amount (mm) Weighted
Average Life
(Years)
Spread
(bps)
Coupon Yield Dollar
Price
A-1 $23.500 2.90 S+33 2.0450% 2.0047% $99.9996
A-2 $188.626 5.81 S+48 2.9320% 2.5396% $101.9957
X $265.158 5.04 Non-Offered

Details

  • Lead Manager and Sole Bookrunner: Morgan Stanley & Co. LLC
  • Co-Managers: Amherst Pierpont Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Multi-Bank Securities, Inc.

Related Links

The K-J11 Certificates are backed by corresponding classes issued by the FREMF 2017-KJ11 Mortgage Trust (K-J11 Trust) and guaranteed by Freddie Mac. The K-J11 Trust will also issue certificates consisting of the Class B and R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-J11 Certificates.

Freddie Mac Multifamily is a leading issuer of agency-guaranteed structured multifamily securities. K-Deals are part of the company's business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds. K Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement.

This announcement is not an offer to sell any securities of Freddie Mac or any other issuer. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac's Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission (SEC) on February 18, 2016; all other reports Freddie Mac filed with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2015, excluding any information "furnished" to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information furnished to the SEC on Form 8-K.

Freddie Mac's press releases sometimes contain forward-looking statements. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company's Annual Report on Form 10-K for the year ended December 31, 2015, and its reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investor Relations page of the company's Web site at www.FreddieMac.com/investors and the SEC's Web site at www.sec.gov.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.






 

The financial and other information contained in the documents that may be accessed on this page speaks only as of the date of those documents. The information could be out of date and no longer accurate. Freddie Mac does not undertake an obligation, and disclaims any duty, to update any of the information in those documents. Freddie Mac's future performance, including financial performance, is subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect the company's future results are discussed more fully in our reports filed with the SEC.