Freddie Mac Prices $328 Million Multifamily K-Deal, K-J32

MCLEAN, Va., Nov. 20, 2020 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates) which are backed by underlying collateral consisting of supplemental multifamily mortgages. The company expects to issue approximately $328 million in K Certificates (K-J32 Certificates), which are expected to settle on or about November 30, 2020.

K-J32 Pricing

Class	Principal/Notional Amount (mm)		Weighted Average Life (Years)	Spread/Discount Margin (bps)	Coupon	Dollar Price
A-1	$65.000		3.52	S+17	0.5160%	$99.9996
A-2	$166.415		7.06	S+44	1.3940%	$101.9999
A-FL	$96.826		4.93	25	1 mo LIBOR + 25	$100.0000
X-FX	Non-Offered
X-FL	Non-Offered

• Lead Manager and Sole Bookrunner: J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
• Co-Managers: Academy Securities Inc., Barclays Capital Inc., NatAlliance Securities, LLC and PNC Capital Markets LLC

Related Links

• The K-J32 Offering Circular Supplement: http://www.freddiemac.com/mbs/data/kj32oc.pdf [pdf] 
• Freddie Mac Multifamily Securitization Overview [pdf]
• Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages

The K-J32 Certificates are backed by corresponding classes issued by the FREMF 2020-KJ32 Mortgage Trust (KJ32 Trust) and guaranteed by Freddie Mac. The KJ32 Trust will also issue certificates consisting of class B-FX, F-FL and class R certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-J32 Certificates. 

Freddie Mac Multifamily is a leading issuer of agency-guaranteed structured multifamily securities. K-Deals are part of the company’s business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds. K Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement.