Freddie Mac Announces 16th Multifamily Securities Offering This Year
- Nov 19, 2012
McLean, Va.—Freddie Mac recently announced a new offering of Structured Pass-Through Certificates (K Certificates), which are multifamily mortgage-backed securities. The company expects to offer approximately $1.2 billion in K Certificates (K-022 Certificates), which are expected to price the week of November 19, 2012, and settle on or about December 11, 2012. This is Freddie Mac’s 16th K Certificate offering this year.
The K-022 Certificates are backed by 81 recently originated multifamily mortgages and are guaranteed by Freddie Mac. The K–022 Certificates will be offered to the market by a syndicate of dealers led by Barclays Capital Inc. and Wells Fargo Securities, LLC as co-lead managers and joint bookrunners. J.P. Morgan Securities LLC, Jefferies & Company, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and UBS Securities LLC will serve as co-managers.
The K-022 Certificates include two senior principal and interest classes, one senior interest only class and a junior interest only class. Standard & Poor’s Ratings Services and DBRS, Inc. have been engaged to rate the three senior classes of K-022 Certificates, which are each expected to receive a rating of “AAA(sf)” from each rating agency, subject to ongoing 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-022 Certificates can be found at http://www.freddiemac.com/mbs/data/k022oc.pdf. A Freddie Mac multifamily investor presentation on the K Certificate deal structure and multifamily loan portfolio performance data is available at FreddieMac.com. 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.