Freddie Mac Prices Seventh Multifamily Securities Offering This Year, K-038
June 17 2014 - 05:28PM
Marketwired
Freddie Mac Prices Seventh Multifamily Securities Offering This
Year, K-038
MCLEAN, VA--(Marketwired - Jun 17, 2014) - Freddie Mac (OTCQB:
FMCC) recently priced a new offering of Structured Pass-Through
Certificates ("K Certificates"), which are multifamily
mortgage-backed securities. The approximately $1.1 billion in K
Certificates ("K-038 Certificates") is expected to settle on or
about June 25, 2014. This is Freddie Mac's seventh K
Certificates offering this year.
K-038 Pricing
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Class |
|
Principal/Notional Amount (mm) |
|
Weighted Average Life (Years) |
|
Spread (bps) |
|
Coupon |
|
Yield |
|
Dollar Price |
A-1 |
|
$170.000 |
|
5.46 |
|
S+32 |
|
2.6040% |
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2.18661% |
|
101.9975 |
A-2 |
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$887.556 |
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9.61 |
|
S+38 |
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3.3890% |
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3.02157% |
|
102.9951 |
X1 |
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$1,057.556 |
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8.72 |
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T+110 |
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1.2034% |
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3.57667% |
|
9.0558 |
X3 |
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$182.979 |
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9.57 |
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T+200 |
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2.4901% |
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4.58617% |
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19.4428 |
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Details
- Co-Lead Managers and Joint Bookrunners: Credit Suisse
Securities (USA) LLC and Wells Fargo Securities, LLC.
- Co-Managers: Barclays Capital Inc., Citigroup Global Markets
Inc., Guggenheim Securities, LLC and The Williams Capital Group,
L.P.
- Rating Agencies: 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.
Related Links
- Press release announcing K-038
- The K-038 preliminary offering circular supplement can be found
at http://www.freddiemac.com/mbs/data/k038oc.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-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 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 homebuyers and is one of
the largest sources of financing for multifamily housing.
www.FreddieMac.com. Twitter: @FreddieMac
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