Freddie Mac Prices $1.1 Billion Multifamily K-Deal, K-F38
MCLEAN, VA–(Marketwired – Nov 10, 2017) – Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates) backed by floating-rate multifamily mortgages with seven-year terms. The approximately $1.1 billion in K Certificates (K-F38 Certificates) are expected to settle on or about November 17, 2017.
|Class||Principal/Notional Amount (mm)||Weighted Average Life (Years)||Discount Margin||Coupon||Dollar Price|
|A||$1,146.227||6.56||33||1 mo LIBOR + 33||100.00|
- Co-Lead Managers and Joint Bookrunners: Goldman Sachs & Co. LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated
- Co-Managers: Barclays Capital Inc., KGS-Alpha Capital Markets, L.P., The Williams Capital Group, L.P. and Wells Fargo Securities, LLC
- The K-F38 preliminary offering circular supplement:
- Freddie Mac Multifamily Investor Presentation
- Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages
The K-F38 Certificates will not be rated, and will include one senior principal and interest class, one interest-only class, and one class entitled to static prepayment premiums. The K-F38 Certificates are backed by corresponding classes issued by the FREMF 2017-KF38 Mortgage Trust (KF38 Trust) and guaranteed by Freddie Mac. The KF38 Trust will also issue certificates consisting of the Class B, C and R Certificates, which will be subordinate to the classes backing the K-F38 Certificates and will not be guaranteed by Freddie Mac.
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 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, 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 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.