MCLEAN, VA--(Marketwired - Nov 8, 2013) - Freddie Mac (
| K-034 Pricing | ||||||||||
| Class | Prin/Notional Amt. | Spread(bps) | Coupon | Wtd. Avg. Life(yrs) | Dollar Price | |||||
| A-1 | $185,503,000 | S+56 | 2.669% | 5.67 | 101.9995 | |||||
| A-2 | $1,109,916,000 | S+58 | 3.531% | 9.59 | 101.9928 | |||||
| X1 | $1,295,419,000 | T+175 | 0.1722% | 8.80 | 1.3215 | |||||
| X3 | $251,350,114 | T+390 | 1.7258% | 9.44 | 12.2541 | |||||
K-034 Details
- Co-Lead Managers and Joint Bookrunners: Wells Fargo Securities, LLC and Credit Suisse Securities (USA) LLC
- Co-Managers: Barclays Capital Inc., Citigroup Global Markets, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley & Co. LLC
- Backed by 79 recently-originated multifamily mortgages.
- Two senior principal and interest classes, one senior interest only class and one junior interest only class.
- Each of the three senior classes is expected to receive ratings of "AAA(sf)" from Fitch Ratings, Inc. and "AAA" from Morningstar Credit Ratings, LLC, subject to ongoing monitoring.
- This is the 18th K Certificate offering this year.
Attribute quote to Mitchell Resnick, vice president of Freddie Mac Multifamily loan pricing and securitization
- "With this issuance, we have surpassed our K-deal volume for all of 2012. This year we've announced 18 K-deals backed by $26.5 billion in collateral and we continue to see good demand for the securities. This is evidence of the strength of the program and the quality of our collateral. We are very proud of our K program. It's a vehicle through which Freddie Mac Multifamily sells the overwhelming majority of the expected risk to private investors while maintaining profitability."
Related Links
- K-034 Certificates preliminary offering circular supplement http://www.freddiemac.com/mbs/data/k034oc.pdf
- Freddie Mac Multifamily Investor Presentation
- Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages
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 a 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, 2012, filed with the Securities and Exchange Commission ("SEC") on February 28, 2013; 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, 2012, 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. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company's Annual Report on Form 10-K for the year ended December 31, 2012, and its reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investor Relations page of the company's Web site at www.FreddieMac.com/investors and the SEC's Web site at www.sec.gov.
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four homebuyers and is one of the largest sources of financing for multifamily housing. www.FreddieMac.com. Twitter: @FreddieMac