MCLEAN, Va., May 11, 2021 (GLOBE NEWSWIRE) – Freddie Mac (OTCQB: FMCC) has a new range of structured pass-through certificates (K certificates), which comprises a class of floating rate bonds tied to the Secured Overnight Financing Rate (SOFR). The K Certificates (K-F111 Certificates) amounting to approximately USD 938 million are expected to be paid on or around May 20, 2021. The K-F111 certificates are secured by multi-family mortgages with variable interest rates with a term of 10 years on an SOFR basis.
|class||Main / nominal amount (mm)||Weighted Average Lifespan (Years)||Discount margin||coupon||Dollar price|
|HOW||$ 938,461||9.52||24||30-day SOFR average + 24||100,000|
- Co-Lead Manager and Joint Bookrunner: 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
The K-F111 certificates are not rated and include a priority capital and interest class as well as a pure interest class, which is also entitled to static prepayment premiums. The K-F111 certificates are secured by corresponding classes that are issued by the FREMF 2021-KF111 Mortgage Trust (KF111 Trust) and guaranteed by Freddie Mac. The KF111 Trust also issues certificates consisting of the certificates of the CS and R classes. These certificates are subordinate to the classes that support the K-F111 certificates and are not guaranteed by Freddie Mac.
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 makes no obligation and disclaims any obligation to update the information in these documents.
Freddie Mac makes the 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 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.
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