Freddie Mac Prices Fourth Multifamily Securities Offering This Year, K-F03
April 10 2014 - 9:13AM
Marketwired
Freddie Mac Prices Fourth Multifamily Securities Offering This
Year, K-F03
MCLEAN, VA--(Marketwired - Apr 10, 2014) - Freddie Mac (OTCQB:
FMCC) recently priced a new offering of Structured Pass-Through
Certificates ("K Certificates"), backed exclusively by LIBOR-based,
floating rate multifamily mortgages with five- and seven-year
terms. The company approximately $1.3 billion in K
Certificates ("K-F03 Certificates") is expected to settle on or
about April 25, 2014. This is Freddie Mac's fourth K
Certificate offering this year and its first floating rate offering
this year.
K-F03 Pricing
Class |
Principal/Notional Amount (mm) |
Weighted Average Life (Years) |
Discounted Margin |
Coupon |
Dollar Price |
A |
$1,304.220 |
5.97 |
34 |
1 mo LIBOR + 34 |
100.00 |
X |
$1,449.133 |
5.97 |
Non-Offered |
Details
- Co-Lead Managers and Joint Bookrunners: by J.P. Morgan
Securities LLC and Wells Fargo Securities, LLC
- Co-Managers: Barclays Capital Inc., Bonwick Capital Partners,
LLC, Credit Suisse Securities (USA) LLC and RBS Securities
Inc.
Related Links
- Press release announcing K-F03
- The K-F03 preliminary offering circular supplement can be found
at http://www.freddiemac.com/mbs/data/kf03oc.pdf.
- Freddie Mac Multifamily Investor Presentation
- Multifamily Securities Investor Access database of
post-securitization data from Investor Reporting Packages
- Freddie Mac Multifamily press releases
The K-F03 Certificates include one senior principal and interest
class and one interest only class, and are not be rated. The
K-F03 Certificates are backed by corresponding classes from the
FREMF 2014-KF03 Mortgage Trust ("K-F03 Trust"). The K-F03
Trust will also issue class B, C and R certificates, which will be
subordinate to the classes backing the K-F03 Certificates and 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 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
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, 2013, filed with the Securities and Exchange
Commission ("SEC") on February 27, 2014; 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, 2013,
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.
Freddie Mac's press releases sometimes contain forward-looking
statements. A description of factors that could cause actual
results to differ materially from the expectations expressed in
these and other forward-looking statements can be found in the
company's Annual Report on Form 10-K for the year ended December
31, 2013, and its reports on Form 10-Q and Form 8-K, filed with the
SEC and available on the Investor Relations page of the company's
Web site at www.FreddieMac.com/investors and the SEC's Web site at
www.sec.gov.
Freddie Mac was established by Congress in 1970 to provide
liquidity, stability and affordability to the nation's residential
mortgage markets. Freddie Mac supports communities across the
nation by providing mortgage capital to lenders. Today Freddie Mac
is making home possible for one in four home borrowers and is one
of the largest sources of financing for multifamily
housing. Additional information is available at
FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog
FreddieMac.com/blog.
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