Freddie Mac Plans $1.3 Billion K Deal

Freddie Mac plans to offer $1.3 billion in structured pass-through multifamily “K” certificates backed by fixed-rate multifamily mortgages with seven-year terms, with pricing for the deal expected to occur on or about May 31, and settlement scheduled to occur on or about June 19.

Merrill Lynch and JPMorgan were named as co-lead managers and joint bookrunners for the deal. Credit Suisse, Jefferies, Morgan Stanley and RBS were named as co-managers.

The K-713 certificates are backed by 74 recently originated multifamily mortgages and guaranteed by Freddie Mac. They include two senior principal and interest classes, a senior interest only class and a junior interest-only class.

Ratings agencies Fitch and Kroll Bond Rating Agency Inc. expect to assign their respective highest ratings to the three senior classes of certificates, subject to ongoing monitoring.