Freddie Mac Announces Seventeenth Multifamily Securities Offering This Year, K-023

MCLEAN, Va., Dec. 4, 2012 /PRNewswire/ -- Freddie Mac (OTC: FMCC) today announced a new offering of Structured Pass-Through Certificates ("K Certificates"), which are multifamily mortgage-backed securities. The company expects to offer approximately $1.1 billion in K Certificates ("K-023 Certificates"), which are expected to price the week of December 3, 2012, and settle on or about December 21, 2012.  This is Freddie Mac's seventeenth K Certificate offering this year.

The K-023 Certificates are backed by 76 recently-originated multifamily mortgages and are guaranteed by Freddie Mac. The K-023 Certificates will be offered to the market by a syndicate of dealers led by J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated as co-lead managers and joint bookrunners. Barclays Capital, Inc., Guggenheim Securities, LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC will serve as co-managers.

The K-023 Certificates include two senior principal and interest classes, one senior interest only class and a junior interest only class.  Fitch, Inc. and Kroll Bond Rating Agency, Inc. have been engaged to rate the three senior classes of K-023 Certificates, which are each expected to receive a rating of "AAA(sf)" from each rating agency, subject to on-going monitoring.  

"The ongoing success of our securitization program continued to exceed our expectations this year," said Mitchell Resnick, vice president of Freddie Mac Multifamily Loan Pricing and Securitization. "By the end of 2012, we will have brought to market over $21 billion in K-Deals, through 17 different offerings for an approximately 50 percent increase over our 2011 issuance.  We also introduced new product types for our investors, including a 5-year deal, a floating rate deal and a fully wrapped deal."

Freddie Mac is a leading issuer of agency-guaranteed structured multifamily securities. K Certificates feature a wide range of investor options with stable cash flows and a structured credit enhancement. K-Deals include guaranteed senior principal and interest, and interest only classes.

The preliminary offering circular supplement relating to the K-023 Certificates can be found at http://www.freddiemac.com/mbs/data/k023oc.pdf.  A Freddie Mac multifamily investor presentation on the K Certificate deal structure and multifamily loan portfolio performance data is available at FreddieMac.com.  Freddie Mac also has an online tool for investors and analysts, Multifamily Securities Investor Access. This is a central database that houses all post-securitization data from Investor Reporting Packages to help investors and analysts monitor K-Deal performance.

This announcement is not an offer to sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac's Annual Report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission ("SEC") on March 9, 2012; all other reports Freddie Mac filed with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 ('Exchange Act") since December 31, 2011, excluding any information "furnished" to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information "furnished" to the SEC on Form 8-K.

Freddie Mac's press releases sometimes contain forward-looking statements. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company's Annual Report on Form 10-K for the year ended December 31, 2011, http://www.freddiemac.com/investors/infostat and its reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investor Relations page of the company's Web site at www.FreddieMac.com/investors and the SEC's Web site at www.sec.gov.

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. Today Freddie Mac is making home possible for one in four homebuyers and is one of the largest sources of financing for multifamily housing. www.FreddieMac.com.  Twitter: @FreddieMac

SOURCE Freddie Mac



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