Freddie Mac Announces Eleventh $1 Billion Multifamily Securities Offering This Year, K-020

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 $1.1 billion in K Certificates (“K-020 Certificates”), which are expected to price the week of September 4, 2012, and settle on or about September 25, 2012. This is Freddie Mac’s eleventh K Certificate offering this year.

The K-020 Certificates are backed by 77 recently originated multifamily mortgages and are guaranteed by Freddie Mac. The K020 Certificates will be offered to the market by a syndicate led by Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC as co-lead managers and joint bookrunners. Barclays Capital Inc., Guggenheim Securities, LLC, J.P. Morgan Securities LLC, and UBS Securities LLC will serve as co-managers.

The K-020 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-020 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.

The preliminary offering circular supplement relating to the K-020 Certificates can be found at http://www.freddiemac.com/mbs/data/k020oc.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.