Freddie Mac Announces First Fully-Wrapped K-Deal, K-P01, Backed By Multifamily Mortgages

Freddie Mac announced its first K-P Series offering of multifamily Structured Pass-Through Certificates (K Certificates).

McLean, Va.—Freddie Mac announced its first K-P Series offering of multifamily Structured Pass-Through Certificates (K Certificates). The company expects to offer approximately $450 million in K Certificates (K-P01 Certificates), which are expected to price the week of September 10, 2012, and settle on or about October 3, 2012. The K-P01 Certificates are guaranteed by Freddie Mac and are backed by 28 seasoned multifamily mortgages.

In the K-P Series, Freddie Mac purchases and guarantees all of the securities issued by the related underlying trust. In contrast, previous K Certificate transactions (non K-P Series) contained some unguaranteed subordinate securities that were placed with third-party investors. Freddie Mac is also serving as special servicer for the related underlying trust, the first time Freddie Mac has served in this capacity in its K Series program. Further, the K-P01 Certificates are backed by seasoned loans from the Freddie Mac’s retained portfolio rather than newly originated loans.

The K-P01 Certificates will be offered to the market by Credit Suisse Securities (USA) LLC as lead manager and bookrunner. CastleOak Securities, L.P., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley & Co. LLC will serve as co-managers. The K-P01 Certificates are unrated and include two senior principal and interest classes and one senior interest only class.

Freddie Mac is a leading issuer of agency-guaranteed structured multifamily securities. They feature a wide range of investor options with stable cash flows and a structured credit enhancement.

The preliminary offering circular supplement relating to the K-P01 Certificates can be found at A Freddie Mac multifamily investor presentation on the K Certificate deal structure and multifamily loan portfolio performance data are available at Freddie Mac also has an online tool for investors and analysts, Multifamily Securities Investor Access.This is a central database that houses all post-securitization data from Investor Reporting Packages to help investors and analysts monitor K-Deal performance.

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