Freddie Mac Offers $1B in Multifamily Securities
- Jul 20, 2011
McLean, Va.–Freddie Mac has announced a new offering of Structured Pass-through Certificates (K Certificates), a form of multifamily mortgage-backed securities. It expects to offer approximately $1 billion in K Certificates (K-014 Certificates), to be priced this week and settled on or around August 10.
The K-014 Certificates will be offered to the market by a syndicate of dealers led by J.P. Morgan Securities LLC and Wells Fargo Securities, LLC as co-lead managers and joint book runners for the transaction. Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Jefferies & Company, Inc. and Morgan Stanley & Co. will serve as comanagers. The certificates are backed by 90 recently originated multifamily mortgages and are guaranteed by Freddie Mac.
This is the eighth K Certificate offering this year. K Certificates provide Freddie Mac with an efficient vehicle to securitize multifamily loans and provide investors with stable cash flows, structured credit enhancement and the Freddie Mac guarantee.