Freddie Mac has announced a new offering of Structured Pass-Through Certificates (K Certificates), which are multifamily mortgage-backed securities (MBS). This is the sixth K Certificates offering this year. The new K Certificates are backed by 75 recently originated multifamily mortgages and are guaranteed by Freddie Mac.
Freddie Mac expects to offer approximately $1 billion in K Certificates, which are expected to price this week and settle on or about May 22. The new K Certificates include two senior principal and interest classes, one senior-interest-only class and a junior-interest-only class. Fitch Inc. and DBRS Inc. have been engaged to rate the three senior classes of certificates, which are each expected to receive a rating of ‘AAA(sf)’, subject to on-going monitoring.Â Â
The new K Certificates will be offered to the market by a syndicate led by J.P. Morgan Securities LLC and Wells Fargo Securities LLC as co-lead managers and joint bookrunners. Barclays Capital Inc., CastleOak Securities LP, Guggenheim Securities, LLC and Morgan Stanley & Co. LLC will serve as co-managers.