Freddie Mac Monday said that its 50th offering of
The company expects to issue approximately $1.3 billion in K certificates through the deal, K-031. These are expected to price on or about Aug. 8, and settle on or about Aug. 27. It is Freddie Mac's 13th K certificate offering this year.
"When we introduced our K-deal offerings in 2009, our goal was to make it a scalable program with regular issuance," said Mitchell Resnick, vice president of Freddie Mac multifamily loan pricing and securitization, in a press release. "We've achieved that goal and at the same time reduce credit exposure by transferring the riskiest portion of the structure to private capital markets investors."
The K-031 certificates are backed by 88 recently originated multifamily mortgages and are guaranteed by Freddie Mac. They will be offered to the market by a syndicate of dealers led by Barclays Capital Inc. and JPMorgan Securities LLC as co-lead managers and joint bookrunners. CastleOak Securities LP, Merrill Lynch, Pierce, Fenner & Smith Inc., Morgan Stanley and Wells Fargo Securities will serve as co-managers.
The certificates include two senior principal and interest classes, one senior interest-only class and one junior IO class. Moody's Investors Service Inc. and Morningstar Credit Ratings LLC are rating the three senior classes, which are each expected to receive their respective top ratings of Aaa(sf) and AAA, subject to ongoing monitoring.
