MCLEAN, Va., Jan. 06, 2021 (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 $1 billion in K Certificates (K-F96 Certificates) are expected to settle on or about January 14, 2021. The K-F96 Certificates are backed by floating-rate multifamily mortgages with 10-year terms.

K-F96 includes one class (Class AS) of senior bonds indexed to SOFR and backed only by SOFR-based mortgages, and another class (Class AL) of senior bonds indexed to LIBOR and backed only by mortgages which are currently LIBOR-based.

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.