OREANDA-NEWS. Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates) backed by floating-rate multifamily mortgages with predominantly 7-year terms. The approximately $1.3 billion in K Certificates (K-F14 Certificates) are expected to settle on or about March 17, 2016.

K-F14 Pricing

                         
Class   Principal/Notional Amount (mm)   Weighted Average Life (Years)   Discounted Margin   Coupon   Yield   Dollar Price
A   $1,337.771   6.34   65   1 mo LIBOR + 65   1.0523%   100.00
X   $1,486.413   6.34   Non-Offered
             

Details

  • Co-Lead Managers and Joint Bookrunners: Credit Suisse (USA) LLC and J.P. Morgan Securities LLC
  • Co-Managers: Goldman, Sachs and Co., Mischler Financial Group, Inc., PNC Capital Markets LLC and Wells Fargo Securities, LLC

Related Links

The K-F14 Certificates will not be rated, and include one senior principal and interest class and one senior interest only class. The K-F14 Certificates are backed by corresponding classes issued by the FREMF 2016-KF14 Mortgage Trust (K-F14 Trust) and guaranteed by Freddie Mac. The K-F14 Trust will also issue certificates consisting of the Class B, C and R Certificates, which will be subordinate to the classes backing the K-F14 Certificates. The K-F14 Trust Class B, C and R Certificates 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 or other issuer's 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, 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.