Fannie Mae late Friday afternoon released information on the pricing of three separate DUS Mega securities totaling $450 million, reflecting for the first time a new sales execution option it had introduced earlier in the week.
“We thought this traded really well compared to other collateral on the market,” Kimberly H. Johnson, vice president, capital markets, told this publication.
Credit Suisse initiated the first dealer-led effort of this type through Fannie’s new “syndicated” sales option for DUS Megas. Using this, “really helped us get the deal subscribed quickly,” she said.
The pricing also is the first done since Fannie said it would rebrand its DUS Megas, syndicated DUS Megas and DUS REMICs as Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS), although Johnson said as of Friday the rebranding was still technically in the process on being added to Bloomberg screens.
The government-sponsored enterprise said it priced two securities (CUSIPs 3138NJAA6 and 3138NJAB4) Friday and one other one (CUSIP 3138NJAC2) on Thursday. They priced at 95.54 (70 basis points over comparable swaps), 96.3 (72 BPs over comparable swaps) and 99.47 (60 BP over comparable swaps), respectively.
The first security, which has roughly a $103.9 million issue size, has a Sept. 1, 2020 maturity date. The second, which has about a $237 million issue size, has a Dec. 1, 2020 maturity date. The third, which has approximately a $108.9 million issue size, has a Dec. 1, 2017 maturity date. All three are slated to settle Friday, Feb. 11.
Weighted averages for coupons, loan-to-value ratios and debt service coverage ratios are, respectively, as follows: 3.584%, 62.5% and 2.38x; 3.763%, 61.6% and 1.98x; and 3.309%, 60.7% and 1.66x.
