MCLEAN, VA--(Marketwired - Nov 17, 2014) - Freddie Mac (
The K-717 Certificates are backed by 75 recently-originated multifamily mortgages and are guaranteed by Freddie Mac. The K-717 Certificates will be offered to the market by a syndicate of dealers led by Barclays Capital Inc. and J.P. Morgan Securities LLC as co-lead managers and joint bookrunners. Bonwick Capital Partners, LLC, Credit Suisse Securities (USA) LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC will serve as co-managers.
The K-717 Certificates include two senior principal and interest classes, one senior interest only class and one junior interest only class. The three senior classes are expected to receive ratings of "AAAsf" by Fitch Ratings, Inc. and "AAA" by Morningstar Credit Ratings, LLC subject to ongoing monitoring.
The K-717 Certificates are backed by corresponding classes issued by the FREMF 2014-K717 Mortgage Trust ("K-717 Trust") and guaranteed by Freddie Mac. The K-717 Trust will also issue certificates consisting of the Class X2-A, X2-B, B, C, D, and R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-717 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.
The preliminary offering circular supplement relating to the K-717 Certificates can be found at http://www.freddiemac.com/mbs/data/k717oc.pdf. A Freddie Mac multifamily investor presentation on the K Certificates deal structure and multifamily loan portfolio performance data is available at FreddieMac.com. 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 www.FreddieMac.com/investors and the SEC's Web site at www.sec.gov.
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. www.FreddieMac.com. Twitter: @FreddieMac