SOURCE: Freddie Mac

Freddie Mac

May 26, 2017 11:22 ET

Freddie Mac Prices $460.4 Million Multifamily K-Deal, K-L01

New Offering is Latest Innovation in Flagship Credit-Risk Transfer Program

MCLEAN, VA--(Marketwired - May 26, 2017) -  Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates), which are multifamily mortgage-backed securities. Announced today, the K-L series of certificates are backed by large loans on multifamily properties. 

The company expects to issue approximately $460.4 million in K Certificates (K-L01 Certificates), which are backed by two large properties located in New York, New York and Irvine, California. The K-L01 Certificates are expected to settle on or about June 6, 2017. 

"KL is the latest series under the K-Deal program featuring large loans and demonstrates the continued effort in developing the most efficient securitizations for distributing risk while supporting liquidity in the multifamily market," said Robert Koontz, vice president of Multifamily Capital Markets.

K-L01 Pricing

Class Principal/
Notional Amount (mm)
  Weighted Average Life (Years) Spread (bps) Coupon   Yield   Dollar Price
A-1E $24,872.000   7.34 S + 60 2.8350%   2.6714%   $100.9957
A-2E $217,000.000   9.72 S + 72 3.2880%   2.9251%   $103.0000
XEX $241,872.000   9.48 Non-Offered
A-1P $48,948.000   4.46 S + 43 2.5440%   2.2751%   $100.9982
A-2P $169,585.000   8.39 S + 66 2.7000%   2.7929%   $99.2457
XPK $218,533.000   7.51 Non-Offered


  • Lead Manager and Sole Bookrunner: J.P. Morgan Securities LLC
  • Co-Managers: Academy Securities Inc.; Barclays Capital Inc.; Jefferies LLC; and PNC Capital Markets LLC

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The K-L01 Certificates will not be rated, and will include four senior principal and interest classes and two interest-only classes. The K-L01 Certificates are backed by corresponding classes issued by FREMF 2017-KL01 Mortgage Trust (K-L01 Trust) and guaranteed by Freddie Mac. The K-L01 Trust will also issue certificates consisting of Class B-E, class B-P and class R certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-L01 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.

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, 2016, filed with the Securities and Exchange Commission (SEC) on February 16, 2017; 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, 2016, 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, 2016, 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 makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at, Twitter @FreddieMac and Freddie Mac's blog

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