OREANDA-NEWS. Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates) that are backed by underlying collateral consisting of supplemental multifamily mortgages. The company expects to issue approximately $88 million in K Certificates (K-J06 Certificates), which are expected to settle on or about July 28, 2016.

K-J06 Pricing

                         
Class   Principal/ Notional Amount (mm)   Weighted Average Life (Years)   Spread (bps)   Coupon   Yield   Dollar Price
A   $87.944   6.49   S+ 75   2.2720%   1.9274%   101.9969
X   $109.930   5.99   Not Offered
             

Details

  • Lead Manager and Sole Bookrunner: Morgan Stanley & Co. LLC
  • Co-Managers: Academy Securities Inc. and Barclays Capital Inc.

Related Links

The K-J06 Certificates are backed by corresponding classes issued by the FREMF 2016-KJ06 Mortgage Trust (K-J06 Trust) and guaranteed by Freddie Mac. The K-J06 Trust will also issue certificates consisting of the Class B and R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-J06 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 securities of Freddie Mac or any other issuer. 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, 2015, filed with the Securities and Exchange Commission (SEC) on February 18, 2016; 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, 2015, 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.