MCLEAN, VA--(Marketwired - Oct 17, 2016) - 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 $518 million in K Certificates (K-S06 Certificates) that are expected to settle on or about October 21, 2016. This is Freddie Mac's sixth K Certificate offering backed exclusively by seniors housing.
K-S06 Pricing
| Class | Principal/Notional Amount (mm) | Weighted Average Life (Years) | Spread (bps) | Coupon | Yield | Dollar Price | ||||||
| A-1 | $158.826 | 6.92 | S + 65 | 2.0790% | 2.0668% | $99.9962 | ||||||
| A-2 | $358.796 | 9.48 | S + 80 | 2.7200% | 2.3577% | $102.9928 | ||||||
| X | $287.568* | 8.54 | T + 230 | 1.2148% | 5.1875% | $7.5073 | ||||||
* 50% of the Class X notional size
Details
- Lead Manager and Bookrunner: Wells Fargo Securities, LLC
- Co-Managers: Jefferies LLC, Multi-Bank Securities, Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC
- The K-S06 Certificates include two senior principal and interest classes and one interest only class, and are not rated.
- The K-S06 Certificates are backed by corresponding classes from the FREMF 2016-KS06 Mortgage Trust and guaranteed by Freddie Mac. The KS06 Mortgage Trust will also issue class B and R certificates, which will be subordinate to the classes backing the K-S06 Certificates and will not be guaranteed by Freddie Mac.
Related Links
- The K-S06 Offering Circular Supplement pdf
- Freddie Mac Multifamily Investor Presentation pdf
- 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 experienced 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.
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, 2015, filed with the Securities and Exchange Commission (SEC) on February 18, 2016; 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, 2015, 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, 2015, 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. Today Freddie Mac is making home possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.
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 does not undertake an obligation, and disclaims any duty, to update any of the information in those documents. Freddie Mac's future performance, including financial performance, is subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect the company's future results are discussed more fully in our reports filed with the SEC.