Freddie to Offer $1.37B Multifamily Structured Securities

Freddie Mac expects to offer about $1.37 billion multifamily structured pass-through mortgage-backed securities as the total of these types of securities issued since the program started in 2009 tops the $57 billion mark.

Pricing of the deal, K-029, is scheduled to occur on or about July 11, and settlement is slated to occur on or about July 24.

The offering, Freddie’s 11^th K deal this year, is backed by 87 recently originated multifamily mortgages. The deal includes two senior principal and interest classes, one senior interest-only class and a junior IO class.

Fitch and DBRS have been engaged to rate the three senior classes, which are expected to receive top ratings from both companies.

Wells Fargo Securities LLC and Morgan Stanley & Co. are leading a syndicate of dealers offering the securities. Wells and Morgan Stanley are co-lead managers and joint bookrunners. Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Jefferies LLC and Merrill Lynch, Pierce, Fenner & Smith Inc. are co-managers.

Mitchell Resnick, vice president of Freddie Mac multifamily loan pricing and securitization, said the volume of K deals done to date “is achieving the K program’s main goal of attracting private capital to the market by placing the subordinate classes with third-party investors.”