Freddie Mac Prices $968 Million Multifamily K-Deal, K-F85

Nachrichtenquelle: globenewswire
22.09.2020, 23:06  |  113   |   |   

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.

K-F85 Pricing

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
X Non-Offered


  • 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.

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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.

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