Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (K 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 billion in K Certificates (K-110 Certificates), which are expected to settle on or about June 25, 2020.
K-110 Pricing
| Class | Principal/Notional Amount (mm) | Weighted Average Life (Years) | Spread (bps) | Coupon | Yield | Dollar Price | ||
| A-1 | $142.411 | 7.17 | S + 45 | 1.01600% | 1.00904% | $ 99.9949 | ||
| A-2 | $781.306 | 9.67 | S + 42 | 1.47700% | 1.14176% | $ 102.9944 | ||
| A-M | $141.004 | 9.83 | S + 50 | 1.23600% | 1.23095% | $ 99.9935 | ||
| X1 | $923.717 | 9.03 | T + 300 | 1.69832% | 3.67834% | $ 13.1483 | ||
| XAM | $141.004 | 9.58 | T + 175 | 1.86825% | 2.46230% | $ 16.1690 | ||
| X3 | $86.329 | 9.62 | T + 550 | 3.40425% | 6.21440% | $ 24.7973 | ||
Details
- Co-Lead Managers and Joint Bookrunners: Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC
- Co-Managers: Brean Capital, LLC, Goldman Sachs and Co. LLC, Siebert Williams Shank & Co., LLC and Wells Fargo Securities, LLC
- Rating Agencies: Fitch Ratings, Inc. and Kroll Bond Rating Agency, Inc.
Related Links
- The K-110 Preliminary Offering Circular Supplement: http://www.freddiemac.com/mbs/data/k110oc.pdf pdf
- Freddie Mac Multifamily Securitization Overview pdf
- Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages
- More information about Class A-M and Class XAM pdf
The K-110 Certificates are backed by corresponding classes issued by the FREMF 2020-K110 Mortgage Trust (K-110 Trust) and guaranteed by Freddie Mac. The K110 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-110 Certificates.
MEDIA CONTACT: Michael Morosi
703-918-5851
Michael_Morosi@FreddieMac.com
INVESTOR CONTACTS: Robert Koontz
571-382-4082
Amanda Nunnink
312-407-7510