Federal Mortgage: Freddie Mac Evaluates $ 550 Million Multi-Family Securities Offering

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MCLEAN, Va., Oct.21, 2021 (GLOBE NEWSWIRE) – Freddie Mac (OTCQB: FMCC) recently priced a new offering of structured pass-through certificates (K certificates), which includes a category of fixed income bonds. variable indexed to the Secure Overnight Funding Rate (SOFR). The approximately $ 550 million K certificates (K-I07 certificates) are expected to be settled on or around November 2, 2021. The K-I07 certificates are backed by 3-year variable rate multi-family mortgages ( subject to two extensions), which are based on SOFR. Each of the mortgages was incorporated in accordance with the Freddie Mac Value Added Program.

Price K-I07

To classify Principal / Notional
Quantity (mm)
Weighted
Mean
Life
(Years)
Weighted
Average life –
Full extension
(Years)
Delivery
Margin
Coupon Price in dollars
A $ 550,593 2.90 4.90 17 30 days SOFR avg + 17 100,000
XI Not offered
XE Not offered
  • Co-Lead Managers and Joint Bookrunners: Amherst Pierpont Securities LLC and JP Morgan Securities LLC
  • Co-managers: CastleOak Securities, LP, NatAlliance Securities, LLC, PNC Capital Markets LLC and Wells Fargo Securities, LLC

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K-I07 certificates consist of a main class and interest and two interest classes only which are also entitled to static prepayment premiums and, in the case of class XE certificates, to an extension fee. The K-I07 certificates are backed by the corresponding classes issued by the FREMF 2021-KI07 Mortgage Trust (K-I07 Trust) and guaranteed by Freddie Mac. The K-I07 Trust will also issue certificates consisting of the Class C and Class R certificates, which will be subordinate to the classes backed by the K-I07 certificates and will not be guaranteed by Freddie Mac.

Freddie Mac Multifamily is a leading issuer of structured multi-family agency-guaranteed securities. The K-Deals are part of the company’s business strategy to transfer part of the risk of losses to taxpayers and private investors who buy the unsecured subordinated bonds. K certificates generally offer a wide range of options for investors with stable cash flow and structured credit enhancement.

This announcement does not constitute an offer to sell any Freddie Mac securities. Offers for any given security are only made through the applicable offering circulars and related supplements, which incorporate Freddie Mac’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the Securities and Exchange Commission (SEC) on February 11. 2021; all other reports filed by Freddie Mac with the SEC pursuant to Section 13 (a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2020, excluding any information “provided” to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC in accordance with Sections 13 (a), 13 (c) or 14 of the Exchange Act, excluding any information “provided” 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 control of the company. Management’s expectations for the future of the Company 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 forward-looking statements and ‘others. 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 Forms 10-Q and 8-K, which are available. on the Investor Relations website. Company website page at www.FreddieMac.com/investors and SEC website at www.sec.gov. The company makes no commitment to update any forward-looking statements it makes to reflect events or circumstances occurring after the date of this press release. The Multi-Family Investors section of the Company’s website at https://mf.freddiemac.com/investors/ will also be updated, from time to time, with any information on significant developments or other events. that may be important to investors, and we encourage investors to periodically access this website for such updated information.

The financial and other information contained in the documents accessible on this page are only valid as of the date of these documents. The information could be out of date and no longer accurate. Freddie Mac assumes no obligation, and disclaims any duty, to update the information contained in these documents.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our inception by Congress in 1970, we’ve made housing more accessible and affordable for buyers and renters in communities across the country. We are building a better housing finance system for buyers, tenants, lenders and taxpayers. Learn more about FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

MEDIA CONTACT: Mike Morosi
703-918-5851
[email protected]
INVESTOR CONTACTS: Robert Koontz
571-382-4082
Luba Kim Reynolds
212-418-8879



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