Freddie Mac Announces K-704 Offering of K Certificates Backed Only By 7-Year Multifamily Mortgages

MCLEAN, Va., Nov. 7, 2011 /PRNewswire/ -- Freddie Mac (OTC: FMCC) today announced its fourth offering of Structured Pass-Through Certificates ("K Certificates") backed exclusively by multifamily mortgages with a 7-year term. The company expects to offer approximately $1.0 billion in K Certificates ("K-704 Certificates"), which are expected to price the week of November 7, 2011, and settle on or about November 29, 2011.  

The K-704 Certificates will be offered to the market by a syndicate of dealers led by Merrill Lynch, Pierce, Fenner & Smith Incorporated and Deutsche Bank Securities Inc. as co-lead managers and joint bookrunners for the transaction.  Barclays Capital Inc., Jefferies & Company, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. and Wells Fargo Securities, LLC will serve as co-managers for the transaction. The K-704 Certificates are backed by 65 recently-originated multifamily mortgages and are guaranteed by Freddie Mac. Rating agencies Fitch, Inc. and Moody's Investors Service, Inc. have been engaged to rate the three senior classes of K-704 Certificates, which are each expected to receive a rating of "AAA(sf)"  and "Aaa(sf)", respectively, subject to on-going monitoring.  

Freddie Mac is a leading issuer of agency-guaranteed structured multifamily securities and has brought to market 11 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 preliminary offering circular supplement relating to the K-704 Certificates can be found at http://www.freddiemac.com/mbs/data/k704oc.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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