Dec. 4, 2012
(OTC: FMCC) today announced a new offering of Structured Pass-Through Certificates ("
"), which are multifamily mortgage-backed securities. The company expects to offer approximately
in K Certificates ("K-023 Certificates"), which are expected to price the week of
December 3, 2012
, and settle on or about
, 2012. This is Freddie Mac's seventeenth K Certificate offering this year.
The K-023 Certificates are backed by 76 recently-originated multifamily mortgages and are guaranteed by Freddie Mac. The K
023 Certificates will be offered to the market by a syndicate of dealers led by J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated as co-lead managers and joint bookrunners. Barclays Capital, Inc., Guggenheim Securities, LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC will serve as co-managers.
The K-023 Certificates include two senior principal and interest classes, one senior interest only class and a junior interest only class. Fitch, Inc. and Kroll Bond Rating Agency, Inc. have been engaged to rate the three senior classes of K-023 Certificates, which are each expected to receive a rating of "AAA(sf)" from each rating agency, subject to on-going monitoring.
"The ongoing success of our securitization program continued to exceed our expectations this year," said
, vice president of Freddie Mac Multifamily Loan Pricing and Securitization. "By the end of 2012, we will have brought to market over
in K-Deals, through 17 different offerings for an approximately 50 percent increase over our 2011 issuance. We also introduced new product types for our investors, including a 5-year deal, a floating rate deal and a fully wrapped deal."
Freddie Mac is a leading issuer of agency-guaranteed structured multifamily securities. K Certificates feature a wide range of investor options with stable cash flows and a structured credit enhancement. K-Deals include guaranteed senior principal and interest, and interest only classes.