Freddie Mac Prices $986 Million Multifamily K-Deal, K-F89

Written by Customer Service on . Posted in Public Companies.

MCLEAN, Va., Oct. 20, 2020 (GLOBE NEWSWIRE) — Freddie Mac (OTCQB: FMCC) has priced a new offering of Structured Pass-Through Certificates (K Certificates), which includes a class of floating rate bonds indexed to the Secured Overnight Financing Rate (SOFR). The approximately $986 million in K Certificates (K-F89 Certificates) are expected to settle on or about October 29, 2020. The K-F89 Certificates are backed by floating-rate multifamily mortgages with 10-year terms, which are currently LIBOR-based.
K-F89 includes one class (Class AL) of senior bonds indexed to LIBOR and another class (Class AS) of senior bonds indexed to SOFR. Freddie Mac will provide a basis risk guarantee on Class AS that covers any floating interest rate basis risk if the value of SOFR exceeds the value of LIBOR.K-F89 PricingDetailsCo-Lead Managers and Joint Bookrunners: Wells Fargo Securities, LLC and Deutsche Bank Securities Inc.Co-Managers: BofA Securities, Inc., BMO Capital Markets Corp., PNC Capital Markets LLC and Samuel A. Ramirez & Company, Inc.Related LinksThe K-F89 preliminary offering circular supplement: http://www.freddiemac.com/mbs/data/kf89oc.pdfFreddie Mac Multifamily Securitization OverviewMultifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages
The K-F89 Certificates will not be rated, and will include two senior principal and interest classes and one interest-only class that is also entitled to static prepayment premiums. The K-F89 Certificates are backed by corresponding classes issued by the FREMF 2020-KF89 Mortgage Trust (KF89 Trust) and guaranteed by Freddie Mac. The KF89 Trust will also issue certificates consisting of the Class C and R Certificates, which will be subordinate to the classes backing the K-F89 Certificates and will not be guaranteed by Freddie Mac.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, 2019, filed with the Securities and Exchange Commission (SEC) on February 13, 2020; 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, 2019, 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.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: Michael Morosi
(703) 918-5851
Michael_Morosi@FreddieMac.com
INVESTOR CONTACTS: Robert Koontz
571-382-4082
Amanda Nunnink
312–407-7510

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