Freddie Mac Prices $1.33 Billion Multifamily K-Deal
MCLEAN, VA--(Marketwired - Oct 6, 2017) - Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates), backed by fixed-rate multifamily mortgages with approximately 10 year terms. The company expects to issue approximately $1.33 billion in K Certificates (K-IR3 Certificates), which are backed by eleven properties located in Irvine, San Diego, San Jose and Santa Clara, California. The K-IR3 Certificates are expected to settle on or about October 24, 2017.
|X||$ 741.546||9.38||T + 150||0.1994%||3.8273%||$0.9575|
- Co-Lead Managers and Joint Bookrunners: Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities LLC
- Co-Managers: Morgan Stanley & Co. LLC, Multi-Bank Securities, Inc., Nomura Securities International, Inc. and Wells Fargo Securities, LLC
- The K-IR3 preliminary offering circular supplement [PDF]
- Freddie Mac Multifamily Investor Presentation [PDF]
- Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages
The K-IR3 Certificates will not be rated, and include two senior principal and interest classes and one interest-only class. The K-IR3 Certificates are backed by corresponding classes issued by the FREMF 2017-KIR3 Mortgage Trust (K-IR3 Trust) and guaranteed by Freddie Mac. The K-IR3 Trust will also issue certificates consisting of the Class B and R Certificates, which will be subordinate to the classes backing the K-IR3 Certificates. The K-IR3 Trust Class B and R Certificates will not be guaranteed by Freddie Mac.
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.
This announcement is not an offer to sell any securities of Freddie Mac or any other issuer. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac's Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission (SEC) on February 16, 2017; all other reports Freddie Mac filed with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2016, excluding any information "furnished" to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information furnished to the SEC on Form 8-K.
Freddie Mac's press releases sometimes contain forward-looking statements. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company's Annual Report on Form 10-K for the year ended December 31, 2016, and its reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investor Relations page of the company's Web site at www.FreddieMac.com/investors and the SEC's Web site at www.sec.gov.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.