Freddie Mac Prices $986 Million Multifamily K-Deal, K-F89
MCLEAN, Va., Oct. 20, 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 $986 million in K Certificates (K-F89 Certificates) are expected to settle on or about October 29, 2020. The K-F89 Certificates are backed by
floating-rate multifamily mortgages with 10-year terms, which are currently LIBOR-based.
K-F89 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-F89 Pricing
Class |
Principal/Notional Amount (mm) |
Weighted Average Life (Years) |
Discount Margin |
Coupon | Dollar Price | |
AL | $536.295 | 9.48 | 32 | 1 mo LIBOR + 32 | 100.000 | |
AS | $450.000 | 9.48 | 37 | 30-day SOFR avg + 37 | 100.000 | |
X | Non-Offered |
Details
- Co-Lead Managers and Joint Bookrunners: Wells Fargo Securities, LLC and Deutsche Bank Securities Inc.
- Co-Managers: BofA Securities, Inc., BMO Capital Markets Corp., PNC Capital Markets LLC and Samuel A. Ramirez & Company, Inc.
Related Links
- The K-F89 preliminary offering circular supplement: http://www.freddiemac.com/mbs/data/kf89oc.pdf
- Freddie Mac Multifamily Securitization Overview
-
Multifamily Securities Investor Access database of post-securitization data from Investor
Reporting Packages
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The K-F89 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-F89 Certificates are backed by corresponding classes issued by the FREMF 2020-KF89 Mortgage Trust (KF89 Trust) and guaranteed by Freddie Mac. The KF89 Trust will also issue certificates consisting of the Class C and R Certificates, which will be subordinate to the classes backing the K-F89 Certificates and will not be guaranteed by Freddie Mac.