MCLEAN, VA--(Marketwired - Sep 12, 2017) - Freddie Mac (
The transaction collateral is part of Freddie Mac's single-asset, single borrower (SASB) execution. SASB transactions are backed by one or multiple properties owned or controlled by a single sponsorship group. Sky is the largest-ever single-asset tax-exempt financing completed by Freddie Mac, a groundbreaking private placement structure that included a direct purchase of tax-exempt and taxable variable rate bonds issued by the New York State Housing Finance Agency with plans to securitize those bonds.
"K-SKY marks a new endeavor for Freddie Mac Multifamily and latest innovation in our flagship K-Deal program," said Robert Koontz, Vice President, Capital Markets at Freddie Mac Multifamily. "This is the final phase of our financing of Sky, a first-of-its-kind structure that provided certainty of execution and delivered pricing far below a standard bond credit enhancement."
K-SKY Pricing
Class | Principal/ Notional Amount (mm) | Weighted Average Life (Years) | Discount Margin | Coupon | Dollar Price | |||||
ATE | $164.000 | 9.93 | 36 | 1 mo LIBOR + 36 | 100.00 | |||||
AT | $386.000 | 9.93 | 44 | 1 mo LIBOR + 44 | 100.00 | |||||
XTE | $164.000 | 9.93 | Non-Offered | |||||||
XT | $386.000 | 9.93 | Non-Offered | |||||||
Details
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The K-SKY Certificates will not be rated, and will include two principal and interest classes and two interest only classes. The K-SKY Certificates are backed by corresponding classes issued by the FREMF 2017-SKY Mortgage Bond Trust (KSKY Trust) and guaranteed by Freddie Mac.
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, 2016, filed with the Securities and Exchange Commission (SEC) on February 16, 2017; 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, 2016, 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, 2016, 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 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.
Contact Information:
MEDIA CONTACT:
Christopher Spina
703-388-7031
Christopher_Spina@FreddieMac.com
INVESTOR CONTACTS:
Robert Koontz
571-382-4082
Aaron Dunn
571-382-5818