SOURCE: Freddie Mac

Freddie Mac

June 15, 2016 11:41 ET

Freddie Mac Prices $1 Billion Multifamily K-Deal, K-F17

MCLEAN, VA--(Marketwired - Jun 15, 2016) - Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates) backed by floating-rate multifamily mortgages with 7-year terms. The approximately $1 billion in K Certificates (K-F17 Certificates) are expected to settle on or about June 23, 2016.

K-F17 Pricing

                         
Class   Principal/Notional Amount (mm)   Weighted Average Life (Years)   Discounted Margin   Coupon   Yield   Dollar Price
A   $1,078.782   6.43   55   1 mo LIBOR +55   0.9519%   100.00
X   $1,198.647   6.44   Non-Offered
             

Details

  • Co-Lead Managers and Joint Bookrunners: Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC
  • Co-Managers: Barclays Capital Inc., Credit Suisse Securities (USA) LLC, PNC Capital Markets LLC and The Williams Capital Group, L.P.

Related Links

The K-F17 Certificates will not be rated, and include one senior principal and interest class and one interest-only class. The K-F17 Certificates are backed by corresponding classes issued by the FREMF 2016-KF17 Mortgage Trust (K-F17 Trust) and guaranteed by Freddie Mac. The K-F17 Trust will also issue certificates consisting of the Class B, C and R Certificates, which will be subordinate to the classes backing the K-F17 Certificates. The K-F17 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.

This announcement is not an offer to sell any securities of Freddie Mac or any other issuer. 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, 2015, filed with the Securities and Exchange Commission (SEC) on February 18, 2016; 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, 2015, 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, 2015, 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 the largest source of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.