Freddie Mac Announces Seventh Multifamily Securities Offering This Year, K-038
June 11 2014 - 11:11AM
Marketwired
Freddie Mac Announces Seventh Multifamily Securities Offering This
Year, K-038
MCLEAN, VA--(Marketwired - Jun 11, 2014) - Freddie Mac
(OTCQB: FMCC) today announced a new offering of Structured
Pass-Through Certificates ("K Certificates"), which are multifamily
mortgage-backed securities. The company expects to issue
approximately $1.1 billion in K Certificates ("K-038
Certificates"), which are expected to price the week of June 9,
2014, and settle on or about June 25, 2014. This is Freddie Mac's
seventh K Certificates offering this year.
The K-038 Certificates are backed by 105 recently-originated
multifamily mortgages and are guaranteed by Freddie Mac. The K-038
Certificates will be offered to the market by a syndicate of
dealers led by Credit Suisse Securities (USA) LLC and Wells Fargo
Securities, LLC as co-lead managers and joint bookrunners. Barclays
Capital Inc., Citigroup Global Markets Inc., Guggenheim Securities,
LLC and The Williams Capital Group, L.P. will serve as
co-managers.
The K-038 Certificates include two senior principal and interest
classes, one senior interest only class and one junior interest
only class. DBRS, Inc. and Fitch Ratings, Inc. are rating the three
senior classes of K-038 Certificates, which are each expected to
receive a rating of "AAA(sf)" and "AAAsf", respectively, subject to
ongoing monitoring.
The K-038 Certificates are backed by corresponding classes
issued by the FREMF 2014-K38 Mortgage Trust ("K-38 Trust") and
guaranteed by Freddie Mac. The K-38 Trust will also issue
certificates consisting of the Class B, C, D and R Certificates,
which will not be guaranteed by Freddie Mac and will not back any
class of K-038 Certificates.
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.
The preliminary offering circular supplement relating to the
K-038 Certificates can be found at
http://www.freddiemac.com/mbs/data/k038oc.pdf. A Freddie Mac
multifamily investor presentation on the K Certificates deal
structure and multifamily loan portfolio performance data is
available at FreddieMac.com. Freddie Mac also has an online tool
for investors and analysts, Multifamily Securities Investor Access.
This is a central database that houses all post-securitization data
from Investor Reporting Packages to help investors and analysts
monitor K-Deal performance.
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 homebuyers and is one of
the largest sources of financing for multifamily housing.
www.FreddieMac.com. Twitter: @FreddieMac
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