SOURCE: Freddie Mac

Freddie Mac

March 10, 2014 12:39 ET

Freddie Mac Announces Third Multifamily Securities Offering This Year, K-037

MCLEAN, VA--(Marketwired - Mar 10, 2014) -  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 $1.15 billion in K Certificates ("K-037 Certificates"), which are expected to price the week of March 10, 2014, and settle on or about March 25, 2014. This is Freddie Mac's third K Certificates offering this year.

The K-037 Certificates are backed by 102 recently-originated multifamily mortgages and are guaranteed by Freddie Mac. The K-037 Certificates will be offered to the market by a syndicate of dealers led by Wells Fargo Securities, LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated as co-lead managers and joint bookrunners. CastleOak Securities, L.P., J. P. Morgan Securities LLC, Morgan Stanley & Co. LLC, and Credit Suisse Securities (USA) LLC will serve as co-managers.

The K-037 Certificates include two senior principal and interest classes, one senior interest only class and one junior interest only class. Standard and Poor's Ratings Services and DBRS, Inc are rating the three senior classes of K-037 Certificates, which are each expected to receive a rating of "AAA(sf)" and "AAA(sf)," respectively, subject to ongoing monitoring. 

The K-037 Certificates are backed by corresponding classes issued by the FREMF 2014-K37 Mortgage Trust ("K-37 Trust") and guaranteed by Freddie Mac. The K-37 Trust will also issue certificates consisting of the Class B, C, D, X2-A, X2-B and R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-037 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-037 Certificates can be found at http://www.freddiemac.com/mbs/data/k037oc.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