Freddie Mac Prices $257 Million Multifamily K-Deal, K-J29

MCLEAN, Va., June 02, 2020 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates) which are backed by underlying collateral consisting of supplemental multifamily mortgages. The company expects to issue approximately $257 million in K Certificates (K-J29 Certificates), which are expected to settle on or about June 11, 2020.

K-J29 Pricing

Class	Principal/Notional Amount (mm)		Weighted Average Life (Years)	Spread (bps)	Coupon	Yield	Dollar Price
A-1	$70.000		4.24	S+41	0.7350%	0.7252%	$99.9963
A-2	$187.961		6.78	S+61	1.4090%	1.0915%	$101.9962
X	Non-Offered

• Co-Lead Managers and Joint Bookrunners: J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
• Co-Managers: Bancroft Capital, LLC, BMO Capital Markets Corp., Cantor Fitzgerald & Co. and PNC Capital Markets LLC

Related Links

• The K-J29 Offering Circular Supplement: http://www.freddiemac.com/mbs/data/kj29oc.pdf [pdf] 
• Freddie Mac Multifamily Securitization Overview [pdf]
• Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages

The K-J29 Certificates are backed by corresponding classes issued by the FREMF 2020-KJ29 Mortgage Trust (KJ29 Trust) and guaranteed by Freddie Mac. The KJ29 Trust will also issue certificates consisting of class B and class R certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-J29 Certificates. 

Freddie Mac Multifamily is a leading issuer of agency-guaranteed structured multifamily securities. K-Deals are part of the company’s business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds. K Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement.

This announcement is not an offer to sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission (SEC) on February 13, 2020; all other reports Freddie Mac filed with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2019, excluding any information "furnished" to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information “furnished” to the SEC on Form 8-K.