Freddie Mac Announces Second Multifamily Securities Offering of the Year, K-025

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Freddie Mac announced a new offering of Structured Pass-Through Certificates (“K 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 $1.3 billion in K Certificates (“K-025 Certificates”), which are expected to price on or about February 1, 2013, and settle on or about February 13, 2013. This is Freddie Mac’s second K Certificate offering this year.

The K-025 Certificates are backed by 83 recently-originated multifamily mortgages and are guaranteed by Freddie Mac. The K025 Certificates will be offered to the market by a syndicate of dealers led by Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley & Co. LLC as co-lead managers and joint bookrunners. Barclays Capital, Inc., Credit Suisse Securities (USA) LLC, Guggenheim Securities, LLC, and J.P. Morgan Securities LLC will serve as co-managers.

The K-025 Certificates include two senior principal and interest classes, one senior interest only class and a junior interest only class. Kroll Bond Rating Agency, Inc. and Moody’s Investors Service, Inc. have been engaged to rate the three senior classes of K-025 Certificates, which are each expected to receive a rating of “AAA(sf)” and “Aaa(sf)”, respectively, subject to ongoing monitoring.

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