CORRECTING and REPLACING – Freddie Mac Prices $1.2 Billion Multifamily K-Deal, K-119
MCLEAN, Va., Nov. 04, 2020 (GLOBE NEWSWIRE) -- In a release issued earlier today under the same headline by Freddie Mac (OTCQB: FMCC), the K-119 Pricing table contained incorrect data points. The corrected release follows:
(OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (), which are backed by underlying collateral consisting of fixed-rate multifamily mortgages with predominantly 10-year terms. The company expects to issue approximately $1.2 billion in K Certificates (K-119 Certificates), which are expected to settle on or about November 13, 2020.
K-119 Pricing
| Class | Principal/Notional Amount (mm) | Weighted Average Life (Years) | Spread (bps) | Coupon | Yield | Dollar Price | ||
| A-1 | $114.000 | 6.49 | S+25 | 0.85000% | 0.84288% | $99.9975 | ||
| A-2 | $1,017.725 | 9.82 | S+37 | 1.56600% | 1.23378% | $102.9960 | ||
| A-M | $146.865 | 9.88 | S+42 | 1.29300% | 1.28798% | $99.9923 | ||
| X1 | $1,131.725 | 9.25 | T+190 | 0.93316% | 2.73385% | $7.6965 | ||
| XAM | $146.865 | 9.63 | T+170 | 1.13403% | 2.56353% | $9.9217 | ||
| X3 | $103.670 | 9.70 | T+415 | 2.72703% | 5.01906% | $21.0678 | ||
Details
- Co-Lead Managers and Joint Bookrunners: J.P. Morgan Securities LLC and Cantor Fitzgerald & Co.
- Co-Managers: Bancroft Capital, LLC, Barclays Capital Inc., BofA Securities, Inc. and NatAlliance Securities
- Rating Agencies: Fitch Ratings, Inc. and Kroll Bond Rating Agency, Inc.
Related Links
- The K-119 Preliminary Offering Circular Supplement:
- Freddie Mac Multifamily
- database of post-securitization data from Investor Reporting Packages
- More information about
The K-119 Certificates are backed by corresponding classes issued by the FREMF 2020-K119 Mortgage Trust (K119 Trust) and guaranteed by Freddie Mac. The K119 Trust will also issue certificates consisting of Class X2-A, Class X2-B, Class D and Class R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-119 Certificates.
is a leading issuer of agency-guaranteed structured multifamily securities. K-Deals are part of the company’s business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds. K Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement.
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, 2019, filed with the Securities and Exchange Commission (SEC) on February 13, 2020; all other reports Freddie Mac filed with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2019, excluding any information "furnished" to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information “furnished” to the SEC on Form 8-K.
Freddie Mac’s press releases sometimes contain forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond the company’s control. Management’s expectations for the company’s future necessarily involve a number of assumptions, judgments and estimates, and various factors could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements. These assumptions, judgments, estimates and factors are discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2019, and its reports on Form 10-Q and Form 8-K, which are available on the Investor Relations page of the company’s Web site at and the SEC’s website at .
The company undertakes no obligation to update forward-looking statements it makes to reflect events or circumstances occurring after the date of this press release. The multifamily investors section of the company’s Web site at will also be updated, from time to time, with any information on material developments or other events that may be important to investors, and we encourage investors to access this website on a regular basis for such updated information.
The financial and other information contained in the documents that may be accessed on this page speaks only as of the date of those documents. The information could be out of date and no longer accurate. Freddie Mac undertakes no obligation, and disclaims any duty, to update any of the information in those documents.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, and taxpayers. Learn more at Twitter and Freddie Mac's blog .
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