MCLEAN, VA--(Marketwired - Jan 19, 2016) - Freddie Mac (
SB-011 Pricing
| Class | Principal/Notional Amount (mm) | Weighted Average Life (Years) | Spread (bps) | Coupon | Yield | Dollar Price | ||||||
| A-5 | $29.445 | 4.05 | S + 115 | 2.5000% | 2.4696% | $99.9983 | ||||||
| A-7 | $7.022 | 5.21 | S + 120 | 2.7000% | 2.6803% | $99.9865 | ||||||
| A-10 | $62.501 | 7.11 | S + 130 | 3.0200% | 3.0076% | $99.9938 | ||||||
| X1 | $109.965 | 6.07 | Non-Offered | |||||||||
Details
- Sole lead manager and bookrunner: Wells Fargo Securities, LLC
- Co-managers: Merrill Lynch, Pierce, Fenner & Smith, Incorporated, J.P. Morgan Securities LLC and Stifel, Nicolaus & Company, Incorporated
- 55 mortgages originated by ReadyCap Commercial, LLC.
- SB11 Offering Circular
- Small Balance Securitization Investor Presentation
Freddie Mac is guaranteeing three senior principal and interest classes and an interest only class of securities issued by the FRESB 2016-SB11 Mortgage Trust and is also acting as mortgage loan seller and master servicer to the trust. In addition to the four classes of securities guaranteed by Freddie Mac, the trust will issue certificates consisting of the Class B, X2 and R Certificates, which will not be guaranteed by Freddie Mac and will be sold to private investors.
The Small Balance Loan (SBL) origination initiative was first announced in October 2014, and expands the company's continuing effort to better serve less populated markets and provide additional liquidity to smaller apartment properties. Loans in the program generally range from $1 million to $5 million and have five or more units. Freddie Mac has a specialty network of Seller/Servicers and SBL lenders with extensive experience in this market who source loans across the country.
This announcement is not an offer to sell any Freddie Mac or other issuer's securities. Offers for any given security are made only through applicable offering circulars and related supplements, which may incorporate Freddie Mac's Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission (SEC) on February 19, 2015; 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, 2014, 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, 2014, 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 .
