Freddie Mac Prices $853 Million Multifamily K-Deal, K-F78

Sixth K-Deal with Bonds Indexed to SOFR

MCLEAN, Va., April 07, 2020 (GLOBE NEWSWIRE) -- 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 $853 million in K Certificates (K-F78 Certificates) are expected to settle on or about April 16, 2020. The K-F78 Certificates are backed by floating-rate multifamily mortgages with 10-year terms, which are currently LIBOR-based.

K-F78 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-F78 Pricing

Class	Principal/Notional Amount (mm)		Weighted Average Life (Years)	Discount Margin	Coupon	Dollar Price
AL	$697.700		9.54	80	1 mo LIBOR + 80	100.000
AS	$155.500		9.54	100	30-day SOFR avg + 100	100.000
X	Non-Offered

Details

• Co-Lead Managers and Joint Bookrunners: Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC
• Co-Managers: Amherst Pierpont Securities LLC, Brean Capital, LLC, CastleOak Securities, L.P. and Goldman Sachs and Co. LLC

Related Links

• The K-F78 preliminary offering circular supplement: http://www.freddiemac.com/mbs/data/kf78oc.pdf
• Freddie Mac Multifamily Securitization Overview
• Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages

The K-F78 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-F78 Certificates are backed by corresponding classes issued by the FREMF 2020-KF78 Mortgage Trust (KF78 Trust) and guaranteed by Freddie Mac. The KF78 Trust will also issue certificates consisting of the Class C and R Certificates, which will be subordinate to the classes backing the K-F78 Certificates and will not be guaranteed by Freddie Mac.