SOURCE: Freddie Mac

Freddie Mac

February 04, 2015 10:16 ET

Freddie Mac Announces Single Sponsor Multifamily K-Deal Backed by Properties Owned by Loan Star Funds

MCLEAN, VA--(Marketwired - Feb 4, 2015) - Freddie Mac (OTCQB: FMCC) today announced a new offering of Structured Pass-Through Certificates ("K Certificates") which are multifamily mortgage-backed securities. The company expects to issue approximately $1.2 billion in K Certificates ("K-LSF Certificates"), which are backed by properties owned by Lone Star Funds. The K-LSF Certificates are expected to price the week of February 2, 2015, and settle on or about February 25, 2015. This is Freddie Mac's second K Certificate offering and it first single borrower K-deal this year.

"We are excited to announce our first single sponsor transaction of 2015," said Mitchell Resnick, vice president of Freddie Mac Mulitfamily Capital Markets. "The single sponsor execution is an important strategic tool for our borrowers and we expect more opportunities in the future for these types of transactions."

The K-LSF Certificates are backed by 11 recently-originated multifamily mortgages and are guaranteed by Freddie Mac. The K-LSF Certificates will be offered to the market by a syndicate of dealers led by Wells Fargo Securities, LLC and Jefferies LLC as co-lead managers and joint bookrunners. Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays Capital Inc., CastleOak Securities, L.P and Guggenheim Securities, LLC will serve as co-managers.

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

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