CORRECTING and REPLACING – Freddie Mac Prices $850 Million Multifamily K-Deal, K-F77

Fifth K-Deal with Bonds Indexed to SOFR

MCLEAN, Va., April 03, 2020 (GLOBE NEWSWIRE) -- In a release issued under the same headline earlier today by Freddie Mac (OTCQB: FMCC) please note that in the table under 'Coupon' the AS Class has change from "1 mo avg SOFR + 90" to "30-day SOFR avg+ 90". The corrected release follows:

Freddie Mac (OTCQB: FMCC) has priced a new offering of Structured Pass-Through Certificates (K Certificates), which includes a class of floating rate bonds indexed to the Secured Overnight Financing Rate (SOFR). The approximately $850 million in K Certificates (K-F77 Certificates) are expected to settle on or about April 15, 2020. The K-F77 Certificates are backed by floating-rate multifamily mortgages with 7-year terms, which are currently LIBOR-based.

K-F77 includes one class (Class AL) of senior bonds indexed to LIBOR and another class (Class AS) of senior bonds indexed to SOFR. Freddie Mac will provide a basis risk guarantee on Class AS that covers any floating interest rate basis risk if the value of SOFR exceeds the value of LIBOR.

K-F77 Pricing
Class	Principal/Notional Amount (mm)		Weighted Average Life (Years)	Discount Margin	Coupon	Dollar Price
AL	$536.618		6.59	70	1 mo LIBOR + 70	100.000
AS	$250.000		6.59	90	30-day SOFR avg+ 90	100.000
X	Non-Offered

Details

• Co-Lead Managers and Joint Bookrunners: Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC
• Co-Managers: Academy Securities Inc., BMO Capital Markets Corp., Goldman Sachs and Co. LLC and J.P. Morgan Securities LLC

Related Links

• The K-F77 preliminary offering circular supplement: http://www.freddiemac.com/mbs/data/kf77oc.pdf
• Freddie Mac Multifamily Securitization Overview
• Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages

The K-F77 Certificates will not be rated, and will include two senior principal and interest classes and one interest-only class that is also entitled to static prepayment premiums. The K-F77 Certificates are backed by corresponding classes issued by the FREMF 2020-KF77 Mortgage Trust (KF77 Trust) and guaranteed by Freddie Mac. The KF77 Trust will also issue certificates consisting of the Class C and R Certificates, which will be subordinate to the classes backing the K-F77 Certificates and will not be guaranteed by Freddie Mac.