Freddie Mac Price $ 938 Million Multifamily K-Deal, K-F111

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MCLEAN, Va., May 11, 2021 (GLOBE NEWSWIRE) – Freddie Mac (OTCQB: FMCC) has offered a new offering of structured certificates of passage (K certificates), which includes a class of variable rate bonds indexed to the day-to-day financing (SOFR). The approximately $ 938 million in K certificates (K-F111 certificates) are expected to be paid on or around May 20, 2021. The K-F111 certificates are backed by 10-year multi-family variable rate mortgages based on SOFR.

Price of K-F111

Classify Principal / notional amount (mm) Weighted average lifespan (years) Discount margin Coupon Dollar price
AS $ 938,461 9.52 24 SOFR over 30 days on average + 24 100,000
XS Not offered

Details

  • Co-Lead Managers and Joint Bookrunners: Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. LLC
  • Co-managers: Academy Securities, Inc., Citigroup Global Markets Inc., Performance Trust Capital Partners, LLC and Wells Fargo Securities, LLC

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K-F111 certificates will not be rated and will include a primary principal and interest category and an interest-only category which is also entitled to static prepayment premiums. K-F111 certificates are backed by the corresponding classes issued by the FREMF 2021-KF111 Mortgage Trust (KF111 Trust) and guaranteed by Freddie Mac. The KF111 Trust will also issue certificates consisting of class CS and R certificates, which will be subordinate to the classes supporting the K-F111 certificates and will not be guaranteed by Freddie Mac.

Freddie Mac Multifamily is one of the leading issuers of structured multi-family agency guaranteed securities. K-Deals are part of the company’s business strategy to transfer part of the risk of loss from taxpayers and private investors who buy the unsecured subordinated bonds. K certificates generally offer a wide range of options for investors with stable cash flow and structured credit enhancement.

This announcement does not constitute an offer to sell any Freddie Mac securities. Offers for a given security are only made through applicable offer circulars and related supplements, which incorporate Freddie Mac’s annual report on Form 10-K for the fiscal year ended December 31, 2020, filed with the Securities and Exchange Commission (SEC) on February 11, 2021; all other reports that Freddie Mac has filed with the SEC in accordance with Section 13 (a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2020, excluding any information “provided” to the SEC on Form 8-K; and any documents that Freddie Mac files with the SEC in accordance with Sections 13 (a), 13 (c) or 14 of the Exchange Act, excluding any information “provided” to the SEC on the form 8-K.

Freddie Mac’s press releases sometimes contain forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond the control of the company. Management’s expectations for the future of the Company necessarily involve a number of assumptions, judgments and estimates, and various factors could cause actual results to differ materially from the expectations expressed in these statements and in documents. ‘other forward-looking statements. These assumptions, judgments, estimates and factors are discussed in the company’s annual report on Form 10-K for the year ended December 31, 2020, and its reports on Form 10-Q and Form 8-K, available on relationships with investors. Company website page at www.FreddieMac.com/investors and the SEC website at www.sec.gov. The company assumes no obligation to update any forward-looking statements it makes to reflect events or circumstances occurring after the date of this press release. The Multi-Family Investors section of the Company’s website at https://mf.freddiemac.com/investors/ will also be updated, from time to time, with any information on significant developments or other events. that may be important to investors, and we encourage investors to periodically access this website for such updated information.

The financial and other information contained in the documents accessible on this page are only valid as of the date of these documents. Information may be out of date and no longer accurate. Freddie Mac assumes no obligation and disclaims any obligation to update the information contained in these documents.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our inception by Congress in 1970, we’ve made housing more accessible and affordable for buyers and renters in communities across the country. We are building a better housing finance system for buyers, tenants, lenders and taxpayers. Learn more about FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

MEDIA CONTACT: Erin Mancini
703-903-1530
[email protected]
INVESTOR CONTACTS: Robert Koontz
571-382-4082
Luba Kim-Reynolds
212-418-8879





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