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.
|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|
- 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
- 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
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.