Freddie Mac Prices $838 million Multifamily K-Deal, K-1520

MCLEAN, Va., April 08, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates), which are multifamily mortgage-backed securities. The company expects to issue approximately $838 million in K Certificates (K-1520 Certificates), which are expected to settle on or about April 15, 2021.

K-1520 Pricing

Class	Principal/Notional Amount (mm)		Weighted Average Life (Years)	Spread (bps)	Coupon	Yield	Dollar Price
A-1	$229.514		11.07	S + 23	2.00700%	2.00174%	$99.9998
A-2	$609.064		14.76	S + 33	2.43800%	2.27693%	$101.9916
X1	$838.578		13.53	T + 130	0.47180%	3.15134%	$5.3376
X3	$67.994		14.65	T + 310	3.09184%	5.01692%	$32.3440

Details

• Co-Lead Managers and Joint Bookrunners: Credit Suisse Securities (USA) LLC and Citigroup Global Markets Inc.
• Co-Managers: Baird, BofA Securities, Inc., Drexel Hamilton, LLC and Wells Fargo Securities, LLC

Related Links

• The K-1520 Preliminary Offering Circular Supplement: http://www.freddiemac.com/mbs/data/0k1520oc.pdf
• Freddie Mac Multifamily Securitization Overview
• Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages
  

The K-1520 Certificates are backed by corresponding classes issued by the FREMF 2021-K1520 Mortgage Trust (K-1520 Trust) and guaranteed by Freddie Mac. The K-1520 Trust will also issue certificates consisting of the Class X2-A, Class X2-B, Class C and Class R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-1520 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.