Freddie Mac Announces K-702 Offering of K Certificates Backed Only By 7-Year Multifamily Mortgages
MCLEAN, Va., June 6, 2011 /PRNewswire/ -- Freddie Mac (OTC: FMCC) today announced its second offering of Structured Pass-Through Certificates ("K Certificates") backed only by multifamily mortgages with a 7-year term. The company expects to offer approximately $1.0 billion in K Certificates ("K-702 Certificates"), which are expected to price the week of June 6, 2011, and settle on or about June 29, 2011.
The K-702 Certificates will be offered to the market by a syndicate of dealers led by J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC as co-lead managers and joint bookrunners for the transaction. Bank of America Merrill Lynch, Barclays Capital Inc., Credit Suisse Securities (USA) LLC, and Jefferies & Company, Inc. have been named as co-managers for the transaction. The K-702 Certificates are backed by 72 recently-originated multifamily mortgages and are guaranteed by Freddie Mac.
Freddie Mac is a leading issuer of agency-guaranteed structured multifamily securities and has brought to market seven K-deals this year, with an issuance size of about $1 billion each. They feature a wide range of investor options with stable cash flows and a structured credit enhancement. K-deals include guaranteed senior and interest only classes. The related underlying private label trust includes unguaranteed mezzanine, subordinate and interest only bonds.
The preliminary offering circular supplement relating to the K-702 Certificates can be found at http://www.freddiemac.com/mbs/data/k702oc.pdf. 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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