Freddie Mac Prices $1 Billion Multifamily K-Deal, K-F90

MCLEAN, Va., Oct. 28, 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 $1 billion in K Certificates (K-F90 Certificates) are expected to settle on or about November 5, 2020. The K-F90 Certificates are backed by floating-rate multifamily mortgages with 10-year terms, which are currently LIBOR-based.

K-F90 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-F90 Pricing

Class	Principal/Notional Amount (mm)		Weighted Average Life (Years)	Discount Margin	Coupon	Dollar Price
AL	$564.255		9.61	33	1 mo LIBOR + 33	100.000
AS	$450.000		9.61	38	30-day SOFR avg + 38	100.000
X	Non-Offered

Details

• Co-Lead Managers and Joint Bookrunners: Morgan Stanley & Co. LLC and Barclays Capital Inc.
• Co-Managers: Cantor Fitzgerald & Co., CastleOak Securities, L.P., J.P. Morgan Securities LLC and Oppenheimer & Co. Inc.

Related Links

• The K-F90 preliminary offering circular supplement: http://www.freddiemac.com/mbs/data/kf90oc.pdf
• Freddie Mac Multifamily Securitization Overview
• Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages
  

The K-F90 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-F90 Certificates are backed by corresponding classes issued by the FREMF 2020-KF90 Mortgage Trust (KF90 Trust) and guaranteed by Freddie Mac. The KF90 Trust will also issue certificates consisting of the Class C and R Certificates, which will be subordinate to the classes backing the K-F90 Certificates and will not be guaranteed by Freddie Mac.