MCLEAN, VA--(Marketwired - May 23, 2017) - Freddie Mac (
K-IR2 Pricing
| Class | Principal/Notional Amount (mm) | Weighted Average Life (Years) | Spread (bps) | Coupon | Yield | Dollar Price | ||||||
| A-1 | $78.106 | 5.27 | S + 47 | 2.7480% | 2.3097% | $101.9996 | ||||||
| A-2 | $267.500 | 9.82 | S + 68 | 3.1720% | 2.8132% | $102.9973 | ||||||
| X | $384.007 | 8.69 | T + 180 | 0.4979% | 3.9612% | $2.8291 |
Details
- Lead Manager and Sole Bookrunner: J.P. Morgan Securities LLC
- Co-Managers: Loop Capital Markets LLC; Merrill Lynch, Pierce, Fenner & Smith Incorporated; Nomura Securities International, Inc.; and Wells Fargo Securities, LLC
Related Links
- The K-IR2 preliminary offering circular supplement [PDF]
- Freddie Mac Multifamily Investor Presentation [PDF]
- Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages
The K-IR2 Certificates will not be rated, and include two senior principal and interest classes and one interest-only class. The K-IR2 Certificates are backed by corresponding classes issued by the FREMF 2017-KIR2 Mortgage Trust (K-IR2 Trust) and guaranteed by Freddie Mac. The K-IR2 Trust will also issue certificates consisting of the Class B and R Certificates, which will be subordinate to the classes backing the K-IR2 Certificates. The K-IR2 Trust Class B and R Certificates will not be guaranteed by Freddie Mac.
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 CONTACT: Robert Koontz 571-382-4082 Aaron Dunn 571-382-5818
