Freddie Mac Announces 15th Multifamily K Certificates Offering This Year, K-711

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Freddie Mac recently announced a new offering of Structured Pass-Through Certificates (K Certificates) backed exclusively by fixed-rate multifamily mortgages with a seven-year term.

Washington, D.C.—Freddie Mac recently announced a new offering of Structured Pass-Through Certificates (K Certificates) backed exclusively by fixed-rate multifamily mortgages with a seven-year term. The company expects to offer approximately $1.2 billion in K Certificates (K-711 Certificates), which are expected to price the week of November 5, 2012, and settle on or about November 20, 2012. This is Freddie Mac’s fifteenth K Certificate offering this year.

The K-711 Certificates will be offered to the market by a syndicate of dealers led by Wells Fargo Securities LLC and Morgan Stanley & Co. LLC as co-lead managers and joint bookrunners. Barclays Capital Inc., Deutsche Bank Securities Inc., Guggenheim Securities, LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated will serve as co-managers.

The K-711 Certificates are backed by 76 recently originated multifamily mortgages and are guaranteed by Freddie Mac. The K-711 Certificates include two senior principal and interest classes, a senior interest only class and a junior interest only class. Rating agencies Fitch, Inc. and Kroll Bond Rating Agency Inc. have been engaged to rate the three senior classes of K-711 Certificates, which are each expected to receive a rating of “AAA(sf)” and “AAA(sf),” respectively, subject to on-going monitoring.

Freddie Mac is a leading issuer of agency-guaranteed structured multifamily securities. K Certificates feature a wide range of investor options with stable cash flows and a structured credit enhancement. K-deals include guaranteed senior principal and interest, and interest only classes.

The preliminary offering circular supplement relating to the K-711 Certificates can be found at http://www.freddiemac.com/mbs/data/k711oc.pdf. A Freddie Mac multifamily investor presentation on the K Certificate deal structure and multifamily loan portfolio performance data are available at FreddieMac.com. Freddie Mac also has an online tool for investors and analysts, Multifamily Securities Investor Access, that houses all post-securitization data from Investor Reporting Packages to help investors and analysts monitor K-deal performance.

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