Freddie Mac to Offer Multifamily Securities

Freddie Mac to Offer Multifamily Securities MCLEAN, VA - Freddie Mac announced a new offering of Structured Pass-Through Certificates ("K Certificates"), multifamily mortgage-backed securities. The company expects to offer approximately $1.1 billion in K Certificates ("K-013 Certificates"), which are expected to price the week of May 16, 2011, and settle on or about May 26, 2011.

The K-013 Certificates will be offered to the market by a syndicate of dealers led by Bank of America Merrill Lynch and Barclays Capital Inc. as Co-Lead Managers and Joint Bookrunners for the transaction. Citigroup Global Capital Markets Inc., Goldman, Sachs & Co., Morgan Stanley & Co. Incorporated and Wells Fargo Securities, LLC have been named as Co-Managers for the transaction.

The K-013 Certificates are backed by 81 recently-originated multifamily mortgages and are guaranteed by Freddie Mac. This is the fifth K Certificate offering this year.

K Certificates provide Freddie Mac with an efficient vehicle to securitize multifamily loans. The certificates provide investors with stable cash flows, structured credit enhancement and the Freddie Mac guarantee.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.
Source: Freddie Mac

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