Freddie Mac Prices $637 Million Seniors Housing Multifamily K Certificates

/EINPresswire.com/ -- MCLEAN, VA--(Marketwired - Dec 1, 2017) - Freddie Mac (OTCQB: FMCC) Multifamily recently priced an offering of Structured Pass-Through Certificates (K Certificates) backed exclusively by multifamily mortgages on seniors housing properties. The company offered approximately $637 million in K Certificates (K-S09 Certificates) that are expected to settle on or about December 12, 2017. This is Freddie Mac's ninth K Certificate offering backed exclusively by seniors housing.

K-S09 Pricing

Class		Principal/Notional Amount (mm)		Weighted Average Life (Years)		Discount Margin		Coupon		Dollar Price
A		$637.908		8.63		37		1 mo LIBOR + 37		$100.0000
X		$637.908		8.63		Not Offered

Details

• Lead Manager and Bookrunner: Wells Fargo Securities, LLC
• Co-Managers: Amherst Pierpont Securities LLC, Cantor Fitzgerald & Co., J.P. Morgan Securities LLC and Samuel Ramirez & Company, Inc.
• The K-S09 Certificates include one senior principal and interest class and one interest only class. They are not rated.
• The K-S09 Certificates are backed by corresponding classes issued by the FREMF 2017-KS09 Mortgage Trust (KS09 Trust) and guaranteed by Freddie Mac. The KS09 Trust will also issue Class B, C and R certificates, which will be subordinate to the classes backing the K-S09 Certificates and will not be guaranteed by Freddie Mac.
  
  

Related Links

• The K-S09 Preliminary Offering Circular Supplement
• Freddie Mac Multifamily Investor Presentation
• Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages
  
  

Freddie Mac Multifamily sources its seniors housing loans from a select group of multifamily lenders with extensive experience in the seniors housing market. Freddie Mac purchases a variety of seniors housing loans including those backed by independent living properties, assisted living properties, memory care properties and senior properties with a limited amount of skilled nursing care.

Freddie Mac Multifamily 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 securities of Freddie Mac or any other issuer. 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, 2016, filed with the Securities and Exchange Commission (SEC) on February 16, 2017; 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, 2016, 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. 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, 2016, 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 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 FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.