Freddie Mac recently announced a new offering of Structured Pass-Through Certificates (“K Certificates”), which are multifamily mortgage-backed securities. The company expects to offer approximately $1.4 billion in K Certificates (“K-030 Certificates”), which are expected to price on or about July 25, 2013, and settle on or about August 7, 2013. This is Freddie Mac’s twelfth K Certificate offering this year.
The K-030 Certificates are backed by 80 recently-originated multifamily mortgages and are guaranteed by Freddie Mac. The K-030 Certificates will be offered to the market by a syndicate of dealers led by Credit Suisse Securities (USA) LLC and Barclays Capital Inc. as co-lead managers and joint bookrunners. Citigroup Global Markets Inc., Guggenheim Securities, LLC, J. P. Morgan Securities LLC and RBS Securities Inc. will serve as co-managers.
The K-030 Certificates include two senior principal and interest classes, one senior interest only class and a junior interest only class. Kroll Bond Rating Agency, Inc. and Moody’s Investors Service, Inc. have been engaged to rate the three senior classes of K-030 Certificates, which are each expected to receive a rating of “AAA(sf)” and “Aaa(sf),” respectively, subject to ongoing monitoring.
Freddie Mac is a leading issuer of agency-guaranteed structured multifamily securities. K Certificates feature a wide range of investor options with stable cash flows and a structured credit enhancement. K-Deals include guaranteed senior principal and interest, and interest only classes.
