Freddie Mac Prices $487 Million K-Deal, K-W03, Supporting Affordable Multifamily Housing for Low- and Moderate-Income Working Families

MCLEAN, VA--(Marketwired - Sep 11, 2017) - Freddie Mac (OTCQB: FMCC) today announced the pricing of a new offering of guaranteed Structured Pass-Through Certificates (K Certificates) backed by loans on multifamily properties affordable to working households earning low- to moderate-incomes. The company expects to issue approximately $487 million in K Certificates (K-W03), which are expected to settle on or about September 19, 2017. K-W03 is the third K-Certificate issued under the K-W Series Freddie Mac launched last year.

The mortgages backing K-W03 are on workforce properties, which have rents below the area average market rent and are affordable to individuals earning 80 percent or less of their area median income, excluding high cost housing markets. K-W03 Certificates are guaranteed by Freddie Mac.

"This is our third K-Deal focused exclusively on workforce housing, which underscores our commitment to the long-term sustainability of this critical segment of the rental market," said Robert Koontz, vice president of Multifamily Capital Markets. "These transactions continue to provide private investors with a responsible way to support the development and preservation of much-needed affordable workforce housing."

K-W03 Pricing

Class   Principal/ Notional Amount (mm)   Weighted Average Life (Years)   Spread (bps)   Coupon   Yield   Dollar Price
A-1   $129.151   6.22   S + 52   2.6170%   2.3383%   $101.4943
A-2   $358.670   9.60   S + 64   3.0190%   2.6562%   $102.9951
X1   $487.821   8.32   T + 185   0.8473%   3.8075%   $6.1577
X3   $54.203   9.61   T + 380   3.0445%   5.8320%   $22.6626


  • Co-Lead Managers and Joint Bookrunners: J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC
  • Co-Managers: Citigroup Global Markets Inc., Drexel Hamilton, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and PNC Capital Markets LLC

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The K-W03 Certificates are backed by corresponding classes issued by the FREMF 2017-KW03 Mortgage Trust (K-W03 Trust) and guaranteed by Freddie Mac. The K-W03 Trust will also issue certificates consisting of the Class X2-A, X2-B, B, C and R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-W03 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, 2016, filed with the Securities and Exchange Commission (SEC) on February 16, 2017; 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, 2016, 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, 2016, 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 and the SEC's Web site at

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, Twitter @FreddieMac and Freddie Mac's blog

Christopher Spina

Robert Koontz
Aaron Dunn

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.