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April 9, 2012 /PRNewswire/ --
Freddie Mac (OTC: FMCC) today announced a new offering of Structured Pass-Through Certificates ("K Certificates") backed exclusively by multifamily mortgages with a 7-year term. The company expects to offer approximately
$1.1 billion in K Certificates ("K-707 Certificates"), which are expected to price the week of
April 9, 2012, and settle on or about
April 26, 2012. This is Freddie Mac's fifth K Certificate offering this year.
The K-707 Certificates will be offered to the market by a syndicate of dealers led by Merrill Lynch, Pierce, Fenner & Smith Incorporated and Credit Suisse Securities (
USA) LLC as co-lead managers and joint bookrunners. J.P. Morgan Securities LLC, Jefferies & Company, Inc., UBS Securities LLC and Wells Fargo Securities, LLC will serve as co-managers. The K-707 Certificates are backed by 66 recently-originated multifamily mortgages and are guaranteed by Freddie Mac.
The K-707 Certificates include two senior principal and interest classes, a senior interest only class and a junior interest only class. Rating agencies Moody's Investors Service, Inc. and Morningstar, Inc. have been engaged to rate the three senior classes of K-707 Certificates, which are each expected to receive a rating of "Aaa(sf)" and "AAA", respectively, subject to on-going monitoring.
Freddie Mac is a leading issuer of agency-guaranteed structured multifamily securities. They feature a wide range of investor options with stable cash flows and a structured credit enhancement. K Deals include guaranteed senior and interest only classes.
The preliminary offering circular supplement relating to the K-707 Certificates can be found at
http://www.freddiemac.com/mbs/data/k707oc.pdf. A Freddie Mac
multifamily investor presentation on the K Certificate deal structure and multifamily loan portfolio performance data are available at FreddieMac.com. Freddie Mac also has an online tool for investors and analysts,
Multifamily Securities Investor Access.
This is a central database that houses all post-securitization data from Investor Reporting Packages to help investors and analysts monitor K Deal performance.
This announcement is not an offer to sell any Freddie Mac securities. 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, 2011, filed with the Securities and Exchange Commission (SEC) on
March 9, 2012; 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, 2011, 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, 2011, 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
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.
SOURCE Freddie Mac