SOURCE: Freddie Mac

Freddie Mac

June 16, 2015 13:40 ET

Freddie Mac Announces Largest Single Loan Multifamily K-Deal Backed by Park La Brea Apartments

MCLEAN, VA--(Marketwired - Jun 16, 2015) - Freddie Mac (OTCQB: FMCC) recently announced a new offering of Structured Pass-Through Certificates ("K Certificates") which are multifamily mortgage-backed securities. The company expects to issue approximately $812 million in K Certificates (K-PLB Certificates), which are backed by Los Angeles' historic Park La Brea, the largest apartment community on the West Coast. The K-PLB Certificates are expected to price on or about June 17, 2015, and settle on or about June 26, 2015. This is the company's twelfth K Certificates offering this year.

"We are very proud to announce our largest single loan securitization," said Mitchell Resnick, vice president of Freddie Mac Multifamily Capital Markets. "Park La Brea Apartments is a prime example of the type of workforce housing Freddie Mac Multifamily is committed to financing."

The 4,245-unit, 144-acre property is rent-controlled, with below market rents in approximately 10 percent of the units. The community has 18 high-rise towers, 175 garden-style apartment buildings and 10,000 residents.

The K-PLB Certificates will be offered to the market by a syndicate of dealers led by Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC as co-lead managers and joint bookrunners. Guggenheim Securities, LLC, Jefferies LLC and J.P. Morgan Securities LLC will serve as co-managers.

The K-PLB Certificates will not be rated, and include one senior principal and interest class and one interest only class. The K-PLB Certificates are backed by corresponding classes issued by the FREMF 2015-KPLB Mortgage Trust (K-PLB Trust) and are guaranteed by Freddie Mac. The K-PLB Trust will also issue certificates consisting of the Class B and R Certificates, which will be subordinate to the classes backing the K-PLB Certificates. The K-PLB Trust Class B and R Certificates will not be guaranteed by Freddie Mac.

The preliminary offering circular supplement relating to the K-PLB Certificates can be found at http://www.freddiemac.com/mbs/data/kplboc.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.

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, 2014, filed with the Securities and Exchange Commission (SEC) on February 19, 2015; 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, 2014, 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, 2014, 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 home borrowers and is one of the largest sources of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.