Freddie Mac Announces Pricing of $384 Million Multifamily Small Balance Loan Securitization

MCLEAN, Va., April 21, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) announces the pricing of the SB85 offering, a multifamily mortgage-backed securitization backed by small balance loans underwritten by Freddie Mac and issued by a third-party trust. The company expects to issue approximately $384 million in SB Certificates (SB85 Certificates), which are expected to settle on or about April 23, 2021. Freddie Mac Small Balance Loans generally range from $1 million to $7.5 million and are generally backed by properties with five or more units. This is the fourth SB Certificate transaction in 2021.

SB85 Pricing

Class	Principal/Notional Amount (mm)		Weighted Average Life (Years)	Spread (bps)	Coupon	Yield	Dollar Price
A-5H	$74.984		4.13	5	0.9500%	0.8128%	100.4983
A-7H	$72.242		5.56	15	1.3200%	1.2203%	100.4618
A-10F	$96.839		7.20	16	1.5900%	1.5051%	100.4986
A-10H	$140.054		7.22	34	1.7700%	1.6879%	100.4725
X1	$384.119		5.11	2,800	0.4061%	28.8153%	4.8062

Details:

• Co-Lead Managers and Joint Bookrunners: J.P. Morgan Securities LLC and Wells Fargo Securities, LLC
• Co-Managers: CastleOak Securities, L.P., Oppenheimer & Co. Inc., Piper Sandler & Co. and Stifel, Nicolaus & Company, Incorporated
• SB85 Certificates Offering Circular
• Small Balance Securitization Investor Presentation PDF

Freddie Mac is guaranteeing four senior principal and interest classes and one interest only class of securities issued by the FRESB 2021-SB85 Mortgage Trust. Freddie Mac is also acting as mortgage loan seller and master servicer to the trust. In addition to the five classes of securities guaranteed by Freddie Mac, the trust will issue certificates consisting of Class B and Class R Certificates, which will not be guaranteed by Freddie Mac and will be sold to private investors.