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.
|Class||Principal/Notional Amount (mm)||Weighted Average Life (Years)||Spread/Discount Margin (bps)||Coupon||Dollar Price|
|A-FL||$96.826||4.93||25||1 mo LIBOR + 25||$100.0000|
- 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
- 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.