MCLEAN, VA -- (Marketwired) -- 09/22/17 -- Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates), backed by fixed-rate multifamily mortgages with seven-year terms. The approximately $464 million in K Certificates (K-MP1 Certificates) are backed by fourteen properties indirectly controlled by Morgan Properties or their affiliates. K-MP1 is expected to settle on or about September 28, 2017.
The transaction collateral is part of Freddie Mac's single-asset, single borrower (SASB) execution. The SASB execution transfers first loss credit risk on either one or multiple properties owned or controlled by a single sponsorship group.
K-MP1 Pricing
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Principal/
Notional Weighted
Amount Average Life Spread Dollar
Class (mm) (Years) (bps) Coupon Yield Price
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A-1 $55.000 4.53 S + 34 2.2330% 2.2091% $99.9964
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A-2 $409.832 6.91 S + 49 2.9820% 2.5237% $102.7883
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X1 $464.832 6.40 Non-Offered
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Details
- Co-Lead Managers and Bookrunners: Merrill Lynch, Pierce, Fenner & Smith Incorporated and PNC Capital Markets LLC
- Co-Managers: Barclays Capital Inc., Cantor Fitzgerald & Co., Credit Suisse Securities (USA) LLC and Drexel Hamilton, LLC
Related Links
- The K-MP1 preliminary offering circular supplement: http://www.freddiemac.com/mbs/data/kmp01oc.pdf
- Freddie Mac Multifamily Investor Presentation
- Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages
The K-MP1 Certificates will not be rated, and will include two senior principal and interest classes and one interest only class. The K-MP1 Certificates are backed by corresponding classes issued by the FREMF 2017-KMP1 Mortgage Trust (KMP1 Trust) and guaranteed by Freddie Mac. The KMP1 Trust will also issue certificates consisting of the Class B, C and R Certificates, which will be subordinate to the classes backing the K-MP1 Certificates. The KMP1 Trust Class B, C and R Certificates will not be guaranteed by Freddie Mac.
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 and 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, 2016, filed with the Securities and Exchange Commission (SEC) on February 16, 2017; 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, 2016, 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, 2016, 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 makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.
MEDIA CONTACT:
Christopher Spina
703-388-7031
Christopher_Spina@FreddieMac.com
INVESTOR CONTACTS:
Robert Koontz
571-382-4082
Aaron Dunn
571-382-5818
