MCLEAN, Va., Feb. 24, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates), which are backed by underlying collateral consisting of fixed-rate multifamily mortgages with predominantly 7-year terms. The company expects to issue approximately $1 billion in K Certificates (K-741 Certificates), which are expected to settle on or about March 4, 2021.
Details
- Co-Lead Managers and Joint Bookrunners: Wells Fargo Securities, LLC and Amherst Pierpont Securities LLC
- Co-Managers: Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Loop Capital Markets LLC and Robert W. Baird & Co. Incorporated
- Rating Agencies: Fitch Ratings, Inc. and DBRS, Inc.
Related Links
- The K-741 Preliminary Offering Circular Supplement: http://www.freddiemac.com/mbs/data/k741oc.pdf
- Freddie Mac Multifamily Securitization Overview
- Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages
- More information about Class A-M and Class XAM
The K-741 Certificates are backed by corresponding classes issued by the FREMF 2021-K741 Mortgage Trust (K-741 Trust) and guaranteed by Freddie Mac. The K-741 Trust will also issue certificates consisting of Class X2-A, Class X2-B, Class D and Class R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-741 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.
