OREANDA-NEWS. Freddie Mac (OTCQB: FMCC) Multifamily recently priced an offering of Structured Pass-Through Certificates (K Certificates) backed exclusively by multifamily mortgages on seniors housing properties. The company offered approximately $1.27 billion in K Certificates (K-S05 Certificates) that are expected to settle on or about July 28, 2016. This is Freddie Mac's fifth K Certificate offering backed exclusively by seniors housing.

K-S05 Pricing

Class   Principal/Notional
Amount (mm)		   Weighted
Average Life
(Years)		   Discounted
Margin		   Coupon   Yield   Dollar
Price
A   $1,269.621   6.20358   50   1 month
LIBOR
+ 50		   0.9017%   100.00
X   $1,410.691   6.20358   Non-Offered

Details

  • Co-Lead Managers and Joint Bookrunners: Wells Fargo Securities, LLC and J. P. Morgan Securities LLC
  • Co-Managers: Goldman, Sachs and Co., Loop Capital Markets LLC, Morgan Stanley & Co. LLC, and PNC Capital Markets LLC
  • The K-S05 Certificates include one senior principal and interest class and one interest only class, and are not rated.
  • The K-S05 Certificates are backed by corresponding classes from the FREMF 2016-KS05 Mortgage Trust and guaranteed by Freddie Mac. The KS05 Mortgage Trust will also issue class B, C and R certificates, which will be subordinate to the classes backing the K-S05 Certificates and will not be guaranteed by Freddie Mac.

Related Links

Freddie Mac Multifamily sources its seniors housing loans from a select group of experienced multifamily lenders with extensive experience in the seniors housing market. Freddie Mac purchases a variety of seniors housing loans including those backed by independent living properties, assisted living properties, memory care properties and senior properties with a limited amount of skilled nursing care.
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.