Freddie Mac Prices $724 Million Multifamily K-Deal, K-HG3, Backed by Properties Controlled by Harbor Group International, LLC

MCLEAN, Va., Oct. 15, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates), backed by a multifamily mortgage loan with one fixed rate component and two floating rate components. The approximately $724 million in K Certificates (K-HG3 Certificates) are backed by 41 properties indirectly controlled by Harbor Group International, LLC, or its affiliates. K-HG3 is expected to settle on or about October 21, 2021.

The transaction collateral is part of Freddie Mac’s single-asset, single borrower (SASB) execution. The SASB execution transfers first loss credit risk on either one or multiple properties owned or controlled by a single sponsorship group.

K-HG3 Pricing

Class	Principal/Notional Amount (mm)		Weighted Average Life (Years)	Spread (bps)	Coupon	Yield	Dollar Price
AFX-1	$33.000		5.48	S+5	1.26500%	1.25288%	99.9970
AFX-2	$401.581		6.93	S+13	1.80600%	1.48858%	101.9984
A-FL	$289.720		6.82	30-day SOFR avg + 19	30-day SOFR avg + 19	0.24012%	100.0000
X-FX	Non-Offered
X-FL	Non-Offered

Details

• Co-Lead Managers and Bookrunners: J.P. Morgan Securities LLC and Amherst Pierpont Securities LLC
• Co-Managers: Barclays Capital Inc., Cantor Fitzgerald & Co., Robert W. Baird & Co. Incorporated and Samuel A. Ramirez & Company, Inc.

Related Links

• The K-HG3 preliminary offering circular supplement: http://capitalmarkets.freddiemac.com/mbs/data/khg3oc.pdf
• Freddie Mac Multifamily Investor Presentation
• Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages
  

The K-HG3 Certificates will not be rated, and will include three senior principal and interest classes and two interest-only classes. The K-HG3 Certificates are backed by corresponding classes issued by the FREMF 2020-KHG3 Mortgage Trust (KHG3 Trust) and guaranteed by Freddie Mac. The KHG3 Trust will also issue certificates consisting of the Class B, C and R Certificates, which will be subordinate to the classes backing the K-HG3 Certificates. The KHG3 Trust Class B, C and R Certificates will not be guaranteed by Freddie Mac.