Freddie Mac Announces K-014 Offering of Approximately $1 Billion in Multifamily Securities
MCLEAN, Va., July 18, 2011 /PRNewswire/ -- Freddie Mac (OTC: FMCC) today announced a new offering of Structured Pass-Through Certificates ("K Certificates"), multifamily mortgage-backed securities. The company expects to offer approximately $1 billion in K Certificates ("K-014 Certificates"), which are expected to price the week of July 18, 2011, and settle on or about August 10, 2011.
The K-014 Certificates will be offered to the market by a syndicate of dealers led by J.P. Morgan Securities LLC and Wells Fargo Securities, LLC as co-lead managers and joint bookrunners for the transaction. Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Jefferies & Company, Inc. and Morgan Stanley & Co. will serve as co-managers for the transaction.
The K-014 Certificates are backed by 90 recently-originated multifamily mortgages and are guaranteed by Freddie Mac. This is the eighth K Certificate offering this year. K Certificates provide Freddie Mac with an efficient vehicle to securitize multifamily loans. The certificates provide investors with stable cash flows, structured credit enhancement and the Freddie Mac guarantee.
The preliminary offering circular supplement relating to the K-014 Certificates can be found at http://www.FreddieMac.com/mbs/data/k014oc.pdf. A multifamily investor presentation and loan performance data are available at FreddieMac.com. This announcement is not an offer to sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac's Annual Report on Form 10-K for the year ended December 31, 2010, filed with the Securities and Exchange Commission ("SEC") on February 24, 2011, and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Securities Exchange Act of 1934, excluding any information "furnished" to the SEC on Form 8-K.
Freddie Mac's press releases sometimes contain forward-looking statements. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company's Annual Report on Form 10-K for the year ended December 31, 2010 and its reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investor Relations page of the company's Web site at www.FreddieMac.com/investors and the SEC's Web site at www.sec.gov.
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters. www.FreddieMac.com
SOURCE Freddie Mac
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