Freddie Mac Announces New Offering of K Certificates
K-009 Structured Securities Backed By Multifamily Mortgages
MCLEAN, Va., Nov. 9, 2010 /PRNewswire-FirstCall/ -- Freddie Mac (OTC Bulletin Board: FMCC) announces a new offering of Structured Pass-Through Certificates ("K Certificates"), multifamily mortgage-backed securities. The company expects to offer approximately $1.1 billion in K Certificates ("K-009 Certificates"), which are expected to price on or about November 16, 2010, and settle on or about November 23, 2010.
The K-009 Certificates will be offered to the market by a network of dealers led by Merrill Lynch, Pierce, Fenner & Smith Incorporated and Barclays Capital Inc as Co-Lead Managers and Joint Bookrunners for the transaction. Citigroup Global Markets Inc., Goldman, Sachs & Co., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Jefferies & Company, Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC have been named as Co-Managers for the transaction. The K-009 Certificates are backed by 70 recently originated multifamily mortgages and are guaranteed by Freddie Mac. The loans were originated using Freddie Mac's Capital Markets Execution(SM) (CME) product.
"We are very pleased with the growth in and performance of our K-Deals," said David Brickman, vice president of Multifamily and CMBS Capital Markets for Freddie Mac. "With more than 80 percent of our multifamily mortgage purchases eligible for securitization, we currently expect that Freddie Mac will begin more frequent issuances beginning next year."
K Certificates provide Freddie Mac with an efficient vehicle to securitize multifamily loans. They provide investors structured guaranteed securities with stable cash flows and with both structured credit enhancement and the Freddie Mac guarantee.
The preliminary offering circular supplement relating to the K-009 Certificates can be found at http://www.freddiemac.com/mbs/data/k009oc.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, 2009, filed with the Securities and Exchange Commission ("SEC") on February 24, 2010, and all documents that Freddie Mac files with the SEC pursuant to Section 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, 2009 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.
SOURCE Freddie Mac
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