Freddie Mac Prices $1.3 Billion Multifamily K-Deal, K-064

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News Desk 2018
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Freddie Mac Prices $1.3 Billion Multifamily K-Deal, K-064

MCLEAN, VA--(Marketwired - May 5, 2017) - Freddie Mac ( OTCQB : FMCC ) recently priced a new offering of Structured Pass-Through Certificates ( K Certificates ), which are multifamily mortgage-backed securities. The company expects to issue approximately $1.3 billion in K Certificates (K-064 Certificates), which are expected to settle on or about May 15, 2017.

K-064 Pricing

Class   Principal/Notional Amount (mm)   Weighted Average Life (Years)   Spread (bps)   Coupon   Yield   Dollar Price
A-1   $197.436   6.82   S + 48   2.8910%   2.5513%   $101.9977
A-2   $1,060.000   9.69   S + 63   3.2240%   2.8617%   $102.9951
A-M   $75.563   9.86   S + 73   3.3270%   2.9691%   $102.9929
X1   $1,257.436   9.01   T + 150   0.7452%   3.7945%   $4.9825
XAM   $75.563   9.61   Not Offered
X3   $217.000   9.64   T + 315   2.2052%   5.4839%   $16.1575

Details

  • Co-Lead Managers and Joint Bookrunners: J.P. Morgan Securities LLC and Barclays Capital Inc.
  • Co-Managers: Credit Suisse Securities (USA) LLC, Drexel Hamilton, LLC, Morgan Stanley & Co. LLC, and Nomura Securities International, Inc.
  • Rating Agencies: S&P Global Ratings and DBRS, Inc.

Related Links

The K-064 Certificates are backed by corresponding classes issued by the FREMF 2017-K64 Mortgage Trust (K-64 Trust) and guaranteed by Freddie Mac. The K-64 Trust will also issue certificates consisting of the Class X2-A, X2-B, B, C, D and R Certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-064 Certificates.

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 .

MEDIA CONTACT: Christopher Spina 703-388-7031 Christopher_Spina@FreddieMac.com INVESTOR CONTACTS: Robert Koontz 571-382-4082 Aaron Dunn 571-382-5818

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