SOURCE: Freddie Mac

Freddie Mac

October 24, 2013 09:12 ET

Freddie Mac Announces Seventeenth Multifamily Securities Offering This Year, K-F02

MCLEAN, VA--(Marketwired - Oct 24, 2013) - Freddie Mac (OTCQB: FMCC) today announced a new offering of Structured Pass-Through Certificates ("K Certificates"), backed exclusively by LIBOR-based, floating rate multifamily mortgages with five- and seven-year terms. The company expects to offer approximately $1.3 billion in K Certificates ("K-F02 Certificates"), which are expected to price the week of October 28, 2013, and settle on or about November 13, 2013. This is Freddie Mac's seventeenth K Certificate offering this year and its second floating rate offering this year.

The K-F02 Certificates are backed by 87 recently-originated floating rate multifamily mortgages and are guaranteed by Freddie Mac. The K-F02 Certificates will be offered to the market by a syndicate of dealers led by Wells Fargo Securities, LLC and J.P. Morgan Securities LLC as co-lead managers and joint bookrunners. Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Jefferies LLC and Mischler Financial Group, Inc. will serve as co-managers.

The K-F02 Certificates include three principal and interest classes and one interest only class. Moody's Investors Service, Inc. (Moody's) and Kroll Bond Rating Agency, Inc. (KBRA) are rating the three principal and interest classes of K-F02 Certificates, Class A-1, A-2, and A-3. Class A-1 is expected to receive a rating of "Aaa(sf)" by Moody's and "AAA(sf)" by KBRA. Class A-2 is expected to receive a rating of "Aa2(sf)" by Moody's and "AAA(sf)" by KBRA. Class A-3 is expected to receive a rating of "A2(sf)" by Moody's and "AA-(sf)" by KBRA. The interest only class, Class X, is expected to receive a rating of "Ba3(sf)" by Moody's and "AAA(sf)" by KBRA. All the ratings will be subject to ongoing monitoring.

Freddie Mac is a leading issuer of agency-guaranteed structured multifamily securities. K Certificates feature a wide range of investor options with stable cash flows and a structured credit enhancement. K-Deals typically include guaranteed senior principal and interest, and interest only classes.

The preliminary offering circular supplement relating to the K-F02 Certificates can be found at A Freddie Mac multifamily investor presentation on the K Certificate 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, 2012, filed with the Securities and Exchange Commission ("SEC") on February 28, 2013; 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, 2012, 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, 2012, 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