Freddie Mac Announces Guaranteed Structured Pass-Through K Certificates Structured Securities Backed by Multifamily Mortgages
September 30,
2009
Contact:
corprel@freddiemac.com
or (703) 903-3933
McLean, VA – Freddie Mac (NYSE: FRE) today announced a new offering of Structured Pass-Through Certificates (“K Certificates”), multifamily mortgage-backed securities that help provide liquidity, stability and affordability to the nation’s multifamily housing market. The company expects to offer approximately $1 billion in K Certificates (“K-004 Certificates”), which are anticipated to price on October 7, 2009, and settle on or about October 22, 2009.
The K-004 Certificates will be offered to the market by a network of dealers led by Deutsche Bank Securities Inc. and Goldman, Sachs & Co. as Co-Lead Managers and Joint Bookrunners for the transaction. Banc of America Securities LLC and J.P. Morgan Securities Inc. have been named as Co-Managers for the transaction. The K-004 Certificates are backed by 46 recently originated multifamily mortgages and are guaranteed by Freddie Mac.
David Brickman, vice president of Multifamily and CMBS Capital Markets for Freddie Mac, said, “Spurred by our successful offering of K Certificates earlier this year, we have a growing and active pipeline of multifamily loans for securitization. In September, this pipeline grew to nearly $3 billion, which includes the loans in the current offering. We expect offerings going forward on at least a quarterly basis, which will enable Freddie Mac to continue to provide even greater liquidity to the multifamily housing market.”
K Certificates provide Freddie Mac with a new vehicle to securitize multifamily loans, offer the market structured guaranteed securities with stable cash flows and with both structured credit enhancement and the Freddie Mac guarantee.
Freddie Mac’s most recent K Certificates offering, backed by approximately $1.06 billion of multifamily loans, settled on June 18, 2009. Traditionally, multifamily loans were held in Freddie Mac’s mortgage-related investments portfolio. K Certificates provide Freddie Mac with a new vehicle to securitize those loans and offer structured guaranteed securities to the market. The loans were originated using Freddie Mac’s Capital Markets ExecutionSM (CME) product.
The preliminary offering circular supplement relating to the K-004 Certificates can be found at
http://www.freddiemac.com/mbs/data/k004oc.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, 2008, filed with the Securities and Exchange Commission (“SEC”) on March 11, 2009, 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, 2008 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.
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