FMCC news Freddie Mac Announces Eleventh $1 Bil

MCLEAN, Va. , Sept. 4, 2012 /PRNewswire/ -- Freddie Mac (OTC: FMCC) today announced a new offering of Structured Pass-Through Certificates (" K Certificates "), which are multifamily mortgage-backed securities. The company expects to offer approximately $1.1 billion in K Certificates ("K-020 Certificates"), which are expected to price the week of September 4, 2012 , and settle on or about September 25 , 2012. This is Freddie Mac's eleventh K Certificate offering this year.

The K-020 Certificates are backed by 77 recently-originated multifamily mortgages and are guaranteed by Freddie Mac. The K - 020 Certificates will be offered to the market by a syndicate led by Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC as co-lead managers and joint bookrunners. Barclays Capital, Inc., Guggenheim Securities, LLC, J.P. Morgan Securities LLC, and UBS Securities LLC will serve as co-managers.

The K-020 Certificates include two senior principal and interest classes, one senior interest only class and a junior interest only class. Fitch, Inc. and Kroll Bond Rating Agency, Inc. have been engaged to rate the three senior classes of K-020 Certificates, which are each expected to receive a rating of "AAA(sf)" from each rating agency, subject to on-going monitoring.

Freddie Mac is a leading issuer of agency-guaranteed structured multifamily securities. K Certificates feature a wide range of investor options with stable cash flows and a structured credit enhancement. K-deals include guaranteed senior principal and interest, and interest only classes.