Freddie Mac Prices $961 Million Multifamily K-Deal, K-F92
MCLEAN, Va., Nov. 17, 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 $961 million in K Certificates (K-F92 Certificates) are expected to settle on or about November 24, 2020. The K-F92 Certificates are backed
by floating-rate multifamily mortgages with 10-year terms, which are currently LIBOR-based.
K-F92 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-F92 Pricing
Class | Principal/Notional Amount (mm) | Weighted Average Life (Years) | Discount Margin | Coupon | Dollar Price |
AL | $461.069 | 9.56 | 33 | 1 mo LIBOR + 33 | 100.000 |
AS | $500.000 | 9.56 | 36 | 30-day SOFR avg + 36 | 100.000 |
X | Non-Offered | ||||
Details
- Co-Lead Managers and Joint Bookrunners: Credit Suisse Securities (USA) LLC and Wells Fargo Securities, LLC
- Co-Managers: Drexel Hamilton, LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Oppenheimer & Co. Inc.
Related Links
- The K-F92 preliminary offering circular supplement: http://www.freddiemac.com/mbs/data/kf92oc.pdf
- Freddie Mac Multifamily Securitization Overview
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Multifamily Securities Investor Access database of post-securitization data from Investor
Reporting Packages
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The K-F92 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-F92 Certificates are backed by corresponding classes issued by the FREMF 2020-KF92 Mortgage Trust (KF92 Trust) and guaranteed by Freddie Mac. The KF92 Trust will also issue certificates consisting of the Class C and R Certificates, which will be subordinate to the classes backing the K-F92 Certificates and will not be guaranteed by Freddie Mac.