OREANDA-NEWS. Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates), which are multifamily mortgage-backed securities. The company expects to issue approximately $1 billion in K Certificates (K-IR1 Certificates), which are backed by 19 properties located in California and indirectly controlled by The Irvine Company LLC. The K-IR1 Certificates are expected to settle on or about May 11, 2016.

K-IR1 Pricing

Class   Principal/ Notional Amount (mm)   Weighted Average Life (Years)   Spread (bps)   Coupon   Yield   Dollar Price
A-1   $225.200   5.35   S + 70   2.446%   2.02166%   $101.9999
A-2   $815.709   9.87   S + 78   2.849%   2.49786%   $102.9943
X   $578.283*   8.79   T + 300   1.238%   4.68719%   $7.9231
* Reflects 50% of class notional amount        

Details

  • Co-Lead Managers and Joint Bookrunners: Merrill Lynch, Pierce, Fenner & Smith, Incorporated, and J.P. Morgan Securities LLC
  • Co-Managers: Citigroup Global Markets Inc., PNC Capital Markets LLC, The Williams Capital Group, L.P. and Wells Fargo Securities LLC