SOURCE: Freddie Mac

Freddie Mac

March 14, 2014 16:09 ET

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

MCLEAN, VA--(Marketwired - Mar 14, 2014) - Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates ("K Certificates"), which are multifamily mortgage-backed securities. The approximately $1.15 billion in K Certificates ("K-037 Certificates") is expected to settle on or about March 25, 2014. This is Freddie Mac's third K Certificates offering this year.

K-037 Pricing

Class   Principal / Notional Amount (mm)   Weighted Average Life (Years)   Spread (bps)   Coupon     Yield     Dollar Price
A-1   $ 187.792   5.26   S + 40   2.5920 %   2.16011 %   101.9964
A-2   $ 965.280   9.64   S + 47   3.4900 %   3.24290 %   101.9927
X1   $ 1,153.072   8.71   T + 125   1.2000 %   3.67390 %   7.7910
X3   $ 211.511   9.58   T + 310   2.2806 %   5.67328 %   16.4261


  • Co-Lead Managers and Joint Bookrunners: Wells Fargo Securities, LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated as co-lead managers and joint bookrunners.
  • Co-Managers: CastleOak Securities, L.P., J. P. Morgan Securities LLC, Morgan Stanley & Co. LLC, and Credit Suisse Securities (USA) LLC.
  • Rating Agencies: 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. 

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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 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 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 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