Freddie Mac Prices $936 Million Multifamily K-Deal, K-F80

Eighth K-Deal with Bonds Indexed to SOFR

MCLEAN, Va., July 08, 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 $936 million in K Certificates (K-F80 Certificates) are expected to settle on or about July 16, 2020. The K-F80 Certificates are backed by floating-rate multifamily mortgages with 10-year terms, which are currently LIBOR-based.

K-F80 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-F80 Pricing
Class	Principal/Notional Amount (mm)	Weighted Average Life (Years)	Discount Margin	Coupon	Dollar Price
AL	$536.217	9.48	44	1 mo LIBOR + 44	100.000
AS	$400.000	9.48	51	30-day SOFR avg + 51	100.000
X	Non-Offered

Details

• Co-Lead Managers and Joint Bookrunners: Goldman Sachs & Co. LLC and PNC Capital Markets LLC
• Co-Managers: Amherst Pierpont Securities LLC, Bancroft Capital, LLC, BMO Capital Markets Corp. and Credit Suisse Securities (USA) LLC

Related Links

• The K-F80 preliminary offering circular supplement: http://www.freddiemac.com/mbs/data/kf80oc.pdf
• Freddie Mac Multifamily Securitization Overview
• Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages

The K-F80 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-F80 Certificates are backed by corresponding classes issued by the FREMF 2020-KF80 Mortgage Trust (KF80 Trust) and guaranteed by Freddie Mac. The KF80 Trust will also issue certificates consisting of the Class C and R Certificates, which will be subordinate to the classes backing the K-F80 Certificates and will not be guaranteed by Freddie Mac.