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Freddie Mac Announces Seventeenth Multifamily Securities Offering This Year, K-023

MCLEAN, Va., Dec. 4, 2012 /PRNewswire/ -- Freddie Mac (OTC: FMCC) today announced a new offering of Structured Pass-Through Certificates (" K Certificates"), which are multifamily mortgage-backed securities. The company expects to offer approximately $1.1 billion in K Certificates ("K-023 Certificates"), which are expected to price the week of December 3, 2012, and settle on or about December 21, 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 Mitchell Resnick, vice president of Freddie Mac Multifamily Loan Pricing and Securitization. "By the end of 2012, we will have brought to market over $21 billion 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.

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