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Freddie Mac Announces Tenth $1 Billion Multifamily Securities Offering This Year, K-019

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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 $1.1 billion in K Certificates (“K-019 Certificates”), which are expected to price the week of July 23, 2012, and settle on or about August 14, 2012. This is Freddie Mac’s tenth K Certificate offering this year.

The K-019 Certificates are backed by 83 recently originated multifamily mortgages and are guaranteed by Freddie Mac. The K-019 Certificates will be offered to the market by a syndicate led by Barclays Capital Inc. and Credit Suisse Securities (USA) LLC as co-lead managers and joint bookrunners. CastleOak Securities, L.P., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, and Wells Fargo Securities, LLC will serve as co-managers. The K-019 Certificates include two senior principal and interest classes, one senior interest only class and a junior interest only class. Fitch, Inc. and DBRS, Inc. have been engaged to rate the three senior classes of K-019 Certificates, which are each expected to receive a rating of “AAA(sf)”, subject to on-going monitoring.

“We are very proud to announce our tenth K-deal of the year, and our 30th transaction since the program began just over three years ago,” says Mitch Resnick, head of Multifamily Capital Markets for Freddie Mac. “With this issuance, we’ve brought $12.6 billion in collateral to market this year.”

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.

The preliminary offering circular supplement relating to the K-019 Certificates can be found at http://www.freddiemac.com/mbs/data/k019oc.pdf. A Freddie Mac multifamily investor presentation on the K Certificate 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.

For more information, visit www.freddiemac.com.

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