Freddie Mac Announces Ninth K Certificates Offering This Year, K-710, Backed By Multifamily Mortgages
- Jul 09, 2012
McLean, Va.—Freddie Mac recently announced a new offering of Structured Pass-Through Certificates (“K Certificates”) backed exclusively by fixed-rate multifamily mortgages with a seven-year term. The company expects to offer approximately $1.1 billion in K Certificates (“K-710 Certificates”), which are expected to price the week of July 9, 2012, and settle on or about July 26, 2012. This is Freddie Mac’s ninth K Certificate offering this year.
The K-710 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 bookrunners. Barclays Capital Inc.; Credit Suisse Securities (USA) LLC; Guggenheim Securities, LLC; Jefferies & Company, Inc.; and Sandler O’Neill + Partners, L.P. will serve as co-managers.
The K-710 Certificates are backed by 55 recently originated multifamily mortgages and are guaranteed by Freddie Mac. The K-710 Certificates include two senior principal and interest classes, a senior interest only class and a junior interest only class. Rating agencies Fitch, Inc. and Morningstar Credit Ratings, LLC have been engaged to rate the three senior classes of K-710 Certificates, which are each expected to receive a rating of “AAA(sf)” and “AAA,” respectively, subject to on-going monitoring.