Freddie Mac Prices $574 Million K-Deal, K-W05, Supporting Affordable Multifamily Housing for Low- and Moderate-Income Working Families

MCLEAN, Va., June 07, 2018 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB:FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates) backed by one group of floating rate mortgages and one group of fixed-rate mortgages on multifamily properties affordable to working households earning low- to moderate-incomes. The company expects to issue approximately $574 million in K Certificates (K-W05), which are expected to settle on or about June 15, 2018. K-W05 is the fifth K-Certificate issued under the K-W series.

The underlying mortgages backing K-W05 are on workforce properties, which generally have rents that are affordable to individuals earning 80 percent or less of their area median income, excluding high cost housing markets. K-W05 Certificates are guaranteed by Freddie Mac.

K-W05 Pricing

Class	Principal/Notional Amount (mm)		Weighted Average Life (Years)	Spread or Discount Margin (bps)	Coupon		Dollar Price
A-FL	$198.000		6.64	L+22	2.2207	%	$100.0000
A-FX	$375.902		9.74	S+59	3.2140	%	$97.6190
XCP	$220.000		0.68	Not Offered
XEXT	$220.000		0.68	Not Offered

Details

• Co-Lead Managers and Joint Bookrunners: Wells Fargo Securities, LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated
• Co-Managers: Amherst Pierpont Securities LLC, Barclays Capital Inc., Drexel Hamilton, LLC, and Morgan Stanley & Co. LLC

Related Links

• The K-W05 Offering Circular Supplement: http://www.freddiemac.com/mbs/data/kw05oc.pdf
• Freddie Mac Multifamily Investor Presentation
• Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages
• Freddie Mac workforce housing loan initiative details

The K-W05 Certificates are backed by corresponding classes issued by the FREMF 2018-KW05 Mortgage Trust (K-W05 Trust) and guaranteed by Freddie Mac. The K-W05 Trust will also issue certificates consisting of the Class B-FL, C-FL, B-FX, C-FX and R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-W05 Certificates.