Federal Mortgage: Freddie Mac Pricing $ 1.1 Billion Multifamily K-Deal, K-132
MCLEAN, Va., Oct. 7, 2021 (GLOBE NEWSWIRE) – Freddie Mac (OTCQB: FMCC) recently evaluated a new offering of structured pass-through certificates (K certificates), which are backed by an underlying collateral consisting of multi-family mortgages with durations mainly of 10 years. The company plans to issue around $ 1.1 billion in K certificates (K-132 certificates), which are expected to settle on or around October 14, 2021.
|To classify||Principal / Notional amount (mm)||Weighted average lifespan (years)||Spread (bps)||Coupon||Yield||Price in dollars|
|A-1||$||83,000||7.64||S + 13||1.50800||%||1.49875||%||$||99.9997|
|A-2||$||896,036||9.86||S + 16||2.02300||%||1.68446||%||$||102.9928|
|A M||$||170,491||Sold via WI-K132 *|
|X1||$||979,036||9.67||T + 65||0.60799||%||2.16647||%||$||4.5224|
|XAM||$||170,491||9.91||T + 70||0.95533||%||2.23319||%||$||7.6761|
|X3||$||60,501||10.09||T + 260||2.98733||%||4.13589||%||$||23.1992|
* For more information on the K-Deal on Freddie Mac’s show, WI-K132, click here.
- Co-Lead Managers and Joint Bookrunners: JP Morgan Securities LLC and Morgan Stanley & Co. LLC
- Co-managers: CastleOak Securities, LP, Goldman Sachs & Co. LLC, Performance Trust and Wells Fargo Securities
- Rating Agencies: Fitch Ratings, Inc. and DBRS, Inc.
K-132 certificates are backed by the corresponding classes issued by the FREMF 2021-K132 Mortgage Trust (K132 Trust) and guaranteed by Freddie Mac. The K132 Trust will also issue certificates consisting of Class X2-A, Class X2-B, Class D, and Class R certificates, which will not be guaranteed by Freddie Mac and will not support any class of K-132 certificates.
Freddie Mac Multifamily is one of the leading issuers 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 does not undertake 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. which may be important to investors, and we encourage investors to periodically access this website for such updated information.
The company does not undertake to update any forward-looking statements it makes to reflect events or circumstances occurring after the date of this press release. The Multi-Family Investor section of the company’s website at https://mf.freddiemac.com/investors/ will also be updated, from time to time, with information on significant developments or other events that may be of importance to investors, and we encourage investors to regularly 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 on FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.
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