Freddie Mac Announces 17th Multifamily Securities Offering This Year, K-023

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Freddie Mac announced a new offering of Structured Pass-Through Certificates, which are multifamily mortgage-backed securities.

McLean, Va.—Freddie Mac announced a new offering of Structured Pass-Through Certificates (“K Certificates”), which are multifamily mortgage-backed securities. The company expects to offer approximately $1.1 billion in K Certificates (“K-023 Certificates”), which are expected to price the week of December 3, 2012, and settle on or about December 21, 2012. This is Freddie Mac’s seventeenth K Certificate offering this year.

The K-023 Certificates are backed by 76 recently originated multifamily mortgages and are guaranteed by Freddie Mac. The K023 Certificates will be offered to the market by a syndicate of dealers led by J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated as co-lead managers and joint book runners. Barclays Capital Inc., Guggenheim Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC will serve as co-managers.

The K-023 Certificates include two senior principal and interest classes, one senior interest only class and a junior interest only class. Fitch, Inc. and Kroll Bond Rating Agency, Inc. have been engaged to rate the three senior classes of K-023 Certificates, which are each expected to receive a rating of “AAA(sf)” from each rating agency, 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.

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