Freddie Mac Prices $886 Million Multifamily K-Deal, K-F114
Freddie Mac (OTCQB: FMCC) has announced the pricing of its new offering of Structured Pass-Through Certificates, totaling approximately $886 million. These K-F114 Certificates are backed by floating-rate multifamily mortgages with 10-year terms indexed to the Secured Overnight Financing Rate (SOFR). The offering is set to settle around June 24, 2021. The K-F114 will include a class of floating-rate bonds and will not be rated. Major financial institutions, including Goldman Sachs and Barclays, have been appointed as co-lead managers.
- Issuance of $886 million in K-F114 Certificates enhances liquidity.
- The backing of floating-rate multifamily mortgages with SOFR offers attractive investment opportunities.
- Involvement of reputable financial institutions as managers may boost investor confidence.
- K-F114 Certificates will not be rated, which could deter some conservative investors.
MCLEAN, Va., June 16, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) has priced a new offering of Structured Pass-Through Certificates (K Certificates), which includes a class of floating rate bonds indexed to the Secured Overnight Financing Rate (SOFR). The approximately
K-F114 Pricing
| Class | Principal/Notional Amount (mm) | Weighted Average Life (Years) | Discount Margin | Coupon | Dollar Price | |
| AS | 9.54 | 22 | 30-day SOFR avg + 22 | 100.000 | ||
| XS | Non-Offered | |||||
Details
- Co-Lead Managers and Joint Bookrunners: Goldman Sachs & Co. LLC and Barclays Capital Inc.
- Co-Managers: Amherst Pierpont Securities LLC, Brownstone Investment Group, LLC CastleOak Securities, L.P. and J.P. Morgan Securities LLC
Related Links
- The K-F114 preliminary offering circular supplement: http://www.freddiemac.com/mbs/data/0kf114oc.pdf
- Freddie Mac Multifamily Securitization Overview
- Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages
The K-F114 Certificates will not be rated and will include one senior principal and interest class and one interest-only class that is also entitled to static prepayment premiums. The K-F114 Certificates are backed by corresponding classes issued by the FREMF 2021-KF114 Mortgage Trust (KF114 Trust) and guaranteed by Freddie Mac. The KF114 Trust will also issue certificates consisting of the Class CS and R Certificates, which will be subordinate to the classes backing the K-F114 Certificates and 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, 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 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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INVESTOR CONTACTS: Robert Koontz
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FAQ
What is the K-F114 Certificate offering by Freddie Mac?
When will the K-F114 Certificates settle?
Who are the co-lead managers for the K-F114 offering?
What backing do the K-F114 Certificates have?
Is the K-F114 offering rated?
