Freddie Mac Prices $968 Million Multifamily K-Deal, K-F85
MCLEAN, Va., Sept. 22, 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 $968 million in K Certificates (K-F85 Certificates) are expected to settle on or about September 30, 2020. The K-F85
Certificates are backed by floating-rate multifamily mortgages with 10-year terms, which are currently LIBOR-based.
K-F85 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.
|Class||Principal/Notional Amount (mm)||Weighted Average Life (Years)||Discount Margin||Coupon||Dollar Price|
|AL||$518.694||9.38||30||1 mo LIBOR + 30||100.000|
|AS||$450.000||9.38||33||30-day SOFR avg + 33||100.000|
- Co-Lead Managers and Joint Bookrunners: Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC
- Co-Managers: Barclays Capital Inc., J.P. Morgan Securities LLC, Performance Trust Capital Partners, LLC and Samuel A. Ramirez & Company, Inc.
- The K-F85 preliminary offering circular supplement: http://www.freddiemac.com/mbs/data/kf85oc.pdf
- Freddie Mac Multifamily Securitization Overview
Multifamily Securities Investor Access database of post-securitization data from
Investor Reporting Packages
The K-F85 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-F85 Certificates are backed by corresponding classes issued by the FREMF 2020-KF85 Mortgage Trust (KF85 Trust) and guaranteed by Freddie Mac. The KF85 Trust will also issue certificates consisting of the Class C and R Certificates, which will be subordinate to the classes backing the K-F85 Certificates and will not be guaranteed by Freddie Mac.