Freddie Mac Prices $1.2 Billion Multifamily K-Deal, K-135
Freddie Mac (OTCQB: FMCC) has successfully priced an offering of Structured Pass-Through Certificates (K-135 Certificates), backed by fixed-rate multifamily mortgages. The total issuance is expected to reach approximately $1.2 billion, with settlement anticipated around December 9, 2021. The certificates will feature various classes, including A-1, A-2, A-M, X1, and XAM, each with specific principal amounts and financial metrics. J.P. Morgan and Morgan Stanley lead the offering, aiming to transfer risk from taxpayers to private investors, enhancing market stability.
- Total issuance of K-135 Certificates is approximately $1.2 billion, indicating strong market demand.
- The structured securities are backed by fixed-rate multifamily mortgages, promoting stability in the multifamily housing sector.
- Freddie Mac's strategy shifts risk from taxpayers to private investors, enhancing financial resilience.
- None.
MCLEAN, Va., Dec. 03, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates), which are backed by underlying collateral consisting of fixed-rate multifamily mortgages with predominantly 10-year terms. The company expects to issue approximately
K-135 Pricing
| Class | Principal/Notional Amount (mm) | Weighted Average Life (Years) | Spread (bps) | Coupon | Yield | Dollar Price |
| A-1 | 6.77 | S+17 | ||||
| A-2 | 9.80 | S+27 | ||||
| A-M | Sold via WI-K135 | |||||
| X1 | 9.21 | T+110 | ||||
| XAM | 9.63 | T+105 | ||||
| X3 | 9.71 | T+280 | ||||
*For more information on Freddie Mac's When-Issued K-Deal, WI-K135, click here.
Details
- Co-Lead Managers and Joint Bookrunners: J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
- Co-Managers: Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Piper Sandler & Co. and Samuel A. Ramirez & Company, Inc.
- Rating Agencies: Fitch Ratings, Inc. and Kroll Bond Rating Agency, Inc.
Related Links
- The K-135 Preliminary Offering Circular Supplement: http://capitalmarkets.freddiemac.com/mbs/data/k135oc.pdf
- When-Issued K-Deal Program Overview
- Freddie Mac Multifamily Securitization Overview
- Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages
The K-135 Certificates are backed by corresponding classes issued by the FREMF 2021-K135 Mortgage Trust (K135 Trust) and guaranteed by Freddie Mac. The K135 Trust will also issue certificates consisting of Class X2-A, Class X2-B, Class D and Class R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-135 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 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, 2020, filed with the Securities and Exchange Commission (SEC) on February 11, 2021; 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, 2020, 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. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond the company’s control. Management’s expectations for the company’s future necessarily involve a number of assumptions, judgments and estimates, and various factors could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements. These assumptions, judgments, estimates and factors are discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2020, and its reports on Form 10-Q and Form 8-K, which are available on the Investor Relations page of the company’s Web site at www.FreddieMac.com/investors and the SEC’s website at www.sec.gov. The company undertakes no obligation to update forward-looking statements it makes to reflect events or circumstances occurring after the date of this press release. The multifamily investors section of the company’s Web site at https://mf.freddiemac.com/investors/ will also be updated, from time to time, with any information on material developments or other events that may be important to investors, and we encourage investors to access this website on a regular basis for such updated information.
The company undertakes no obligation to update forward-looking statements it makes to reflect events or circumstances occurring after the date of this press release. The multifamily investors section of the company’s Web site at https://mf.freddiemac.com/investors/ will also be updated, from time to time, with any information on material developments or other events that may be important to investors, and we encourage investors to access this website on a regular basis for such updated information.
The financial and other information contained in the documents that may be accessed on this page speaks only as of the date of those documents. The information could be out of date and no longer accurate. Freddie Mac undertakes no obligation, and disclaims any duty, to update any of the information in those documents.
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: Erin Mancini
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Erin_Mancini@FreddieMac.com
INVESTOR CONTACTS: Robert Koontz
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Luba Kim-Reynolds
212-418-8879
FAQ
What is the total amount of the new K-135 Certificates offering by Freddie Mac (FMCC)?
When is the settlement date for the K-135 Certificates offered by Freddie Mac?
Who are the lead managers for the K-135 Certificates offering by Freddie Mac?
What type of mortgages back the K-135 Certificates issued by Freddie Mac?
