MCLEAN, Va., May 5, 2021 (GLOBE NEWSWIRE) – Freddie Mac (OTCQB: FMCC) recently launched a new offering for structured pass-through certificates (K certificates), which is secured by underlying collateral consisting of fixed-rate multi-family mortgages with a predominantly 7-year term. The company expects to issue approximately $ 773 billion in K Certificates (K-742 Certificates), expected to be settled on or about May 13, 2021.
|class||Client / nominal
|A-1||$ 185,300||4.63||S + 2||0.8610%||0.8504%||$ 99,9974|
|A-2||$ 497.975||6.74||S + 6||1.7600%||1.2807%||$ 102.9971|
|AT THE||$ 89.849||6.90||S + 11||1.3690%||1.3591%||$ 99.9995|
|X-1||$ 683,275||5.93||T + 45||0.8691%||1.4668%||$ 4.2993|
|X-3||$ 62,686||6.70||T + 210||2.6853%||3.2933%||$ 15.7458|
- Co-Lead Manager and Joint Bookrunner: JP Morgan Securities LLC and Barclays Capital Inc.
- Co-Manager: Brownstone Investment Group, LLC, Cantor Fitzgerald & Co., Morgan Stanley & Co. LLC and Stern Brothers & Co.
- Rating agencies: Fitch Ratings, Inc. and DBRS, Inc.
The K-742 certificates are secured by appropriate classes issued by the FREMF 2021-K742 Mortgage Trust (K-742 Trust) and guaranteed by Freddie Mac. The K-742 Trust also issues certificates consisting of X2-A, X2-B, D, and R certificates that are not guaranteed by Freddie Mac and do not support any class of K-742 certificates.
Freddie Mac Apartment Building is a leading issuer of multi-family structured papers guaranteed by agencies. K-Deals are part of the company’s business strategy to shift some of the risk of loss from taxpayers to private investors who buy the non-guaranteed subordinated bonds. K Certificates usually offer 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 particular security will only be made through appropriate offering circulars and related supplements that will supplement Freddie Mac’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (SEC) on February 11, 2020 contain. 2021; all other reports Freddie Mac has filed with the SEC under Section 13 (a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2020, except for any information submitted to the SEC on Form 8-K ” “were; and all documents Freddie Mac files with the SEC under Section 13 (a), 13 (c) or 14 of the Exchange Act, except for any information “made available” to the SEC on 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 those expressed in these and 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 in the reports on Form 10-Q and Form 8-K available in Investor Relations Page of the company’s website at www.FreddieMac.com/investors and the SEC website at www.sec.gov. The company assumes no obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this press release. The multi-family investor section on the company’s website at https://mf.freddiemac.com/investors/ will also be updated from time to time with information on material developments or other events that may be important to investors, and we encourage investors to regularly review this website for such updated information.
The financial and other information in the documents that can be accessed on this page is only valid as of the date of these documents. The information may be out of date and no longer correct. Freddie Mac assumes no obligation and disclaims any obligation to update the information in these documents.
Freddie Mac makes homes possible for millions of families and individuals by providing mortgage capital to lenders. Since our inception by Congress in 1970, we’ve made housing construction more accessible and affordable for buyers and renters in communities across the country. We’re building a better real estate finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.