Freddie Mac Prices $239 Million Multifamily K-Deal, K-J19

MCLEAN, VA–(Marketwired – Mar 28, 2018) – Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates) that are backed by underlying collateral consisting of supplemental multifamily mortgages. The company expects to issue approximately $239 million in K Certificates (K-J19 Certificates), which settled on March 27, 2018.

K-J19 Pricing

Class Principal/Notional
Amount (mm)
Weighted
Average Life
(Years)
Spread (bps) Coupon Yield Dollar
Price
A-FL $122,297,000.00 4.85 L + 23 1.9001% 1.9076% $100.0000
A-1 $45,782,000.00 3.50 S + 17 2.9110% 2.8696% $99.9999
A-2 $71,894,000.00 4.56 S + 25 3.4980% 2.9921% $101.9993
XI $143,879,582.00 4.88 Non-Offered
XP $143,879,582.00 4.86 Non-Offered
X $147,095,595.00 4.15 Non-Offered
  • Lead Manager and Sole Bookrunner: Merrill Lynch, Pierce, Fenner & Smith Incorporated
  • Co-Managers: Amherst Pierpont Securities LLC, Citigroup Global Markets Inc., KGS-Alpha Capital Markets, L.P. and The Williams Capital Group, L.P.

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The K-J19 Certificates are backed by corresponding classes issued by the FREMF 2018-KJ19 Mortgage Trust (KJ19 Trust) and guaranteed by Freddie Mac. The KJ19 Trust will also issue certificates consisting of class B-FL, class B-FX and class R certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-J19 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.

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, 2017, filed with the Securities and Exchange Commission (SEC) on February 15, 2018; 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, 2017, 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. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond the company’s control. Management’s expectations for the company’s future necessarily involve a number of assumptions, judgments and estimates, and various factors could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements. These assumptions, judgments, estimates and factors are discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2017, and its reports on Form 10-Q and Form 8-K, which are available on the Investor Relations page of the company’s Web site at www.FreddieMac.com/investors and the SEC’s website at www.sec.gov. The company undertakes no obligation to update forward-looking statements it makes to reflect events or circumstances occurring after the date of this press release.

The financial and other information contained in the documents that may be accessed on this page speaks only as of the date of those documents. The information could be out of date and no longer accurate. Freddie Mac undertakes no obligation, and disclaims any duty, to update any of the information in those documents.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

MEDIA CONTACT:
Christopher Spina
703-388-7031
Christopher_Spina@FreddieMac.com

INVESTOR CONTACT:
Robert Koontz
571-382-4082
Aaron Dunn
571-382-5818