MCLEAN, VA -- (Marketwired) -- 06/17/14 --
Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates ("K Certificates"), which are multifamily mortgage-backed securities. The approximately $1.1 billion in K Certificates ("K-038 Certificates") is expected to settle on or about June 25, 2014. This is Freddie Mac's seventh K Certificates offering this year.
Principal/Notional Average Life Spread Dollar
Class Amount (mm) (Years) (bps) Coupon Yield Price
A-1 $170.000 5.46 S+32 2.6040% 2.18661% 101.9975
A-2 $887.556 9.61 S+38 3.3890% 3.02157% 102.9951
X1 $1,057.556 8.72 T+110 1.2034% 3.57667% 9.0558
X3 $182.979 9.57 T+200 2.4901% 4.58617% 19.4428
•Co-Lead Managers and Joint Bookrunners: Credit Suisse Securities (USA
) LLC and Wells Fargo Securities, LLC
. •Co-Managers: Barclays Capital Inc.
, Citigroup Global Markets Inc.
, Guggenheim Securities, LLC
and The Williams Capital Group, L.P.
•Rating Agencies: DBRS, Inc.
and Fitch Ratings, Inc.
are rating the three senior classes of K-038 Certificates, which are each expected to receive a rating of "AAA(sf)" and "AAAsf", respectively, subject to ongoing monitoring. Related Links
•Press release announcing K-038
•The K-038 preliminary offering circular supplement can be found at http://www.freddiemac.com/mbs/data/k038oc.pdf
•Freddie Mac Multifamily Investor Presentation
•Multifamily Securities Investor Access
database of post-securitization data from Investor Reporting Packages •Freddie Mac Multifamily press releases
The K-038 Certificates are backed by corresponding classes issued by the FREMF 2014-K38 Mortgage Trust
") and guaranteed by Freddie Mac
. The K-38 Trust
will also issue certificates consisting of the Class B, C, D and R Certificates, which will not be guaranteed by Freddie Mac
and will not back any class of K-038 Certificates.
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 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 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, 2013
, filed with the Securities and Exchange Commission
(SEC) on February 27, 2014
; 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, 2013
, 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.
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, 2013
, 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
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
Source: Freddie Mac