Freddie Mac Prices $215 Million Multifamily K-Deal, K-J36

MCLEAN, Va., Dec. 08, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates) which are backed by underlying collateral consisting of supplemental multifamily mortgages. The company expects to issue approximately $215 million in K Certificates (K-J36 Certificates), which are expected to settle on or about December 16, 2021.

K-J36 Pricing

Class	Principal/Notional Amount (mm)		Weighted Average Life (Years)	Spread (bps)	Coupon		Yield		Dollar Price
A-1	$37.440		3.93	S-1	1.2980%		1.2789%		$99.9996
A-2	$177.683		7.56	S+28	2.0710%		1.7747%		$101.9989
X	Non-Offered

• Co-Lead Managers and Joint Bookrunners: Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
• Co-Managers: Drexel Hamilton, LLC, J.P. Morgan Securities LLC, Nomura Securities International, Inc. and PNC Capital Markets LLC

Related Links

• The K-J36 Offering Circular Supplement: http://capitalmarkets.freddiemac.com/mbs/data/kj36oc.pdf [pdf] 
• Freddie Mac Multifamily Securitization Overview [pdf]
• Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages
  

The K-J36 Certificates are backed by corresponding classes issued by the FREMF 2021-KJ36 Mortgage Trust (KJ36 Trust) and guaranteed by Freddie Mac. The KJ36 Trust will also issue certificates consisting of class B and class R certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-J36 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.