Freddie Mac Prices $1.1 Billion Multifamily K-Deal, K-L02

MCLEAN, VA–(Marketwired – Mar 7, 2018) – 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-L02 Certificates) are backed by three groups of multifamily mortgages consisting of eight floating rate mortgages, one fixed rate mortgage and one mortgage with fixed and floating rate components, respectively.

The transaction collateral is part of Freddie Mac’s K-L series of certificates, which are backed by large loans or pools of related mortgage loans on multifamily properties. The K-L02 Certificates are expected to settle on or about March 16, 2018. 

K-L02 Pricing

Class Principal/
Amount (mm)
Average Life
Spread or
Margin (bps)
Coupon Yield Dollar
A-PZ $372,552.300 9.55 S + 24 1.9101% 1.9177% $100.0000
XI-PZ $413,947.000 4.59 Non-Offered
XP-PZ $413,947.000 4.58 Non-Offered
A-SWC $175,500.000 6.53 S + 34 3.0038% 3.1392% $98.7590
AFL-B $354,486.000 6.86 L + 23 1.9001% N/A $100.0000
AFX-B $283,588.800 6.86 S + 45 3.2628% 3.2617% $99.5184
XI-B $354,486.000 2.84 Non-Offered
XP-B $708,972.000 4.71 Non-Offered


  • Co-Lead Managers and Joint Bookrunners: Wells Fargo Securities, LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated
  • Co-Managers: Credit Suisse Securities (USA) LLC, Jefferies LLC, Nomura Securities International, Inc. and Stern Brothers & Co.

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The K-L02 Certificates will not be rated, and will include four senior principal and interest classes and four interest-only classes. The K-L02 Certificates are backed by corresponding classes issued by FREMF 2018-KL02 Mortgage Trust (K-L02 Trust) and guaranteed by Freddie Mac. The K-L02 Trust will also issue certificates consisting of Class B-PZ, Class C-PZ, Class B-SWC, Class B-B, Class C-B and Class R certificates. which will not be guaranteed by Freddie Mac and will not back any class of K-L02 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, 2017, filed with the Securities and Exchange Commission (SEC) on February 15, 2018; 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, 2017, 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, 2017, 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
[email protected]

Robert Koontz
Aaron Dunn