MCLEAN, VA -- (Marketwired) -- 04/02/13 -- Freddie Mac (OTCQB: FMCC) today announced a new offering of Structured Pass-Through Certificates ("K Certificates") backed exclusively by fixed-rate multifamily mortgages with a 7-year term. The company expects to offer approximately $1.4 billion in K Certificates ("K-712 Certificates"), which are expected to price the week of April 1, 2013, and settle on or about April 23, 2013. This is Freddie Mac's fifth K Certificate offering this year.
The K-712 Certificates will be offered to the market by a syndicate of dealers led by J. P. Morgan Securities LLC and Wells Fargo Securities, LLC as co-lead managers and joint bookrunners. Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Guggenheim Securities, LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated will serve as co-managers.
The K-712 Certificates are backed by 74 recently-originated multifamily mortgages and are guaranteed by Freddie Mac. The K-712 Certificates include two senior principal and interest classes, a senior interest only class and a junior interest only class. Rating agencies Standard & Poor's Ratings Services and Morningstar Credit Ratings, LLC have been engaged to rate the three senior classes of K-712 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. 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.
The preliminary offering circular supplement relating to the K-712 Certificates can be found at http://www.freddiemac.com/mbs/data/k712oc.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, 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, 2012, filed with the Securities and Exchange Commission ("SEC") on February 28, 2013; 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, 2012, 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, 2012, 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 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. Today Freddie Mac is making home possible for one in four homebuyers and is one of the largest sources of financing for multifamily housing. www.FreddieMac.com. Twitter: @FreddieMac
Add to Digg Bookmark with del.icio.us Add to Newsvine
Most Popular Stories
- Study: Recessions Can Postpone Motherhood Forever
- Tim Cook Has Proved That Apple is His Baby
- Hispanic Entrepreneurs Short-changed in Texas
- China Approves iPhone 6 After Security Assurances
- U.S. Home Prices Rose at Slowest Pace in 20 Months
- Meet the YouTube Tech Review Sensation
- Who Is Daniel Ivascyn?
- PBS Series Examines America's Demographic Shift
- Hispanics Carry Big Clout: Census
- Netflix Eyes Hollywood With Feature Film