Freddie Mac Prices Tenth Multifamily Securities Offering This Year, K-039

MCLEAN, VA--(Marketwired - Sep 9, 2014) - Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates ("K Certificates"), which are multifamily mortgage-backed securities. The approximately $1.1 billion in K Certificates ("K-039 Certificates") are expected settle on or about September 18, 2014. This is Freddie Mac's tenth K Certificates offering this year.

K-039 Pricing

Class   Principal/ Notional Amount (mm)   Weighted Average Life (Years)   Spread (bps)   Coupon   Yield   Dollar Price
A-1   $156.270   5.38   S+34   2.6830%   2.25881%   101.9961
A-2   $977.510   9.69   S+40   3.3030%   2.93919%   102.9980
X1   $1,133.780   8.87   T+125   0.7696%   3.61776%   5.8988
X3   $196.168   9.64   T+240   2.1135%   4.84703%   16.3824


  • Co-Lead Managers and Joint Bookrunners: Wells Fargo Securities, LLC and Barclays Capital Inc.
  • Co-Managers: Bonwick Capital Partners, LLC, Guggenheim Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and RBS Securities Inc.
  • Rating Agencies: Fitch Ratings, Inc. and Kroll Bond Rating Agency, Inc. are rating the senior classes of K-039 Certificates, which are each expected to receive a rating of "AAAsf" and "AAA(sf)", respectively, subject to ongoing monitoring.

Related Links

Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages

The K-039 Certificates are backed by corresponding classes issued by the FREMF 2014-K39 Mortgage Trust ("K-39 Trust") and guaranteed by Freddie Mac. The K-39 Trust will also issue certificates consisting of the Class B, C, D, X2-A, X2-B and R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-039 Certificates. 

The K-039 transaction launches enhancements to Freddie Mac's servicing standard which improves the alignment of securitization party interests as well as the consistency, quality and speed of borrower transactions.

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.

The preliminary offering circular supplement relating to the K-039 Certificates can be found at A Freddie Mac multifamily investor presentation on the K Certificates deal structure and multifamily loan portfolio performance data is available at Freddie Mac also has an online tool for investors and analysts, Multifamily Securities Investor Access. This is a central database that houses all post-securitization data from Investor Reporting Packages to help investors and analysts monitor K-Deal performance.

This announcement is not an offer to sell any Freddie Mac securities. 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, 2013, filed with the Securities and Exchange Commission (SEC) on February 27, 2014; 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, 2013, 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, 2013, 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 was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four homebuyers and is one of the largest sources of financing for multifamily housing. Twitter: @FreddieMac


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.