Freddie Mac (OTC: FMCC) recently announced its third offering of Structured Pass-Through Certificates (“K Certificates”) backed only by multifamily mortgages with a 7-year term. The company expects to offer approximately $1.0 billion in K Certificates (“K-703 Certificates”), which are expected to price the week of August 22, 2011, and settle on or about September 14, 2011.
The K-703 Certificates will be offered to the market by a syndicate of dealers led by Wells Fargo Securities, LLC and Credit Suisse Securities (USA) LLC as co-lead managers and joint book runners for the transaction. Barclays Capital Inc., Jefferies & Company, Inc., J.P. Morgan Securities LLC, and Merrill Lynch, Pierce, Fenner & Smith Inc. will serve as co-managers for the transaction. The K-703 Certificates are backed by 71 recently-originated multifamily mortgages and are guaranteed by Freddie Mac. Rating agencies Fitch, Inc. and Moody’s Investors Service, Inc. have been engaged for the transaction.
Freddie Mac is a leading issuer of agency-guaranteed structured multifamily securities and has brought to market nine K-deals this year, with an issuance size of about $1 billion each. They feature a wide range of investor options with stable cash flows and a structured credit enhancement. K-deals include guaranteed senior and interest-only classes.
The preliminary offering circular supplement relating to the K-703 Certificates can be found at http://www.freddiemac.com/mbs/data/k703oc.pdf.
For more information, visit www.FreddieMac.com.