Freddie Mac Prices $1 Billion Multifamily K-Deal, K-F96

MCLEAN, Va., Jan. 06, 2021 (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-F96 Certificates) are expected to settle on or about January 14, 2021. The K-F96 Certificates are backed by floating-rate multifamily mortgages with 10-year terms.

K-F96 includes one class (Class AS) of senior bonds indexed to SOFR and backed only by SOFR-based mortgages, and another class (Class AL) of senior bonds indexed to LIBOR and backed only by mortgages which are currently LIBOR-based.

K-F96 Pricing

Class	Principal/Notional Amount (mm)		Weighted Average Life (Years)	Discount Margin	Coupon	Dollar Price
AL	$363.992		9.48	26	1 mo LIBOR + 26	100.000
AS	$653.177		9.48	30	30-day SOFR avg + 30	100.000
XL	Non-Offered
XS	Non-Offered

Details

• Co-Lead Managers and Joint Bookrunners: Wells Fargo Securities, LLC and Goldman Sachs & Co. LLC
• Co-Managers: BofA Securities, Inc., Brean Capital, LLC, CastleOakSecurities, L.P., Mizuho Securities USA LLC and Morgan Stanley & Co. LLC

Related Links

• The K-F96 preliminary offering circular supplement: http://www.freddiemac.com/mbs/data/kf96oc.pdf
• Freddie Mac Multifamily Securitization Overview
• Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages
  

The K-F96 Certificates will not be rated, and will include two senior principal and interest classes and two interest-only classes that are also entitled to static prepayment premiums. The K-F96 Certificates are backed by corresponding classes issued by the FREMF 2021-KF96 Mortgage Trust (KF96 Trust) and guaranteed by Freddie Mac. The KF96 Trust will also issue certificates consisting of the Class CL, CS and R Certificates, which will be subordinate to the classes backing the K-F96 Certificates and will not be guaranteed by Freddie Mac.