Fannie Mae Prices $1.05 Billion Multifamily DUS REMIC (FNA 2016-M4) Under Its GeMS™ Program
WASHINGTON, April 18, 2016 /PRNewswire/ -- Fannie Mae (OTC Bulletin Board: FNMA) priced its fourth Multifamily DUS® REMIC in 2016 totaling $1.05 billion under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS) program on April 12, 2016.
"Investor sentiment was stronger in April than earlier in the year," said Josh Seiff, Fannie Mae's Vice President of Capital Markets and Trading. "The better tone gave us an opportunity to offer investors some longer-duration paper, in addition to our benchmark 10-year offering. There was very strong demand for the $548.7 million AL tranche, which was backed by seasoned 30-year MBS from our portfolio. Structures like this one broaden the traditional investor base for Multifamily securities and enable Fannie Mae to offer a broader array of competitive deal structures to borrowers."
All classes of FNA 2016-M4 are guaranteed by Fannie Mae with respect to the full and timely payment of interest and principal. The structure details for the multi-tranche offering are in the table below:
|
Class |
Original Face |
Weighted |
Coupon |
Coupon |
Spread |
Offered Price |
|
A1 |
$48,942,000 |
5.98 |
2.187 |
Fixed |
S+70 |
101.00 |
|
A2 |
$394,395,000 |
9.81 |
2.576 |
Fixed |
S+83 |
101.00 |
|
AB1 |
$6,674,000 |
5.98 |
1.990 |
Fixed |
S+73 |
99.75 |
|
AB2 |
$53,781,740 |
9.81 |
2.482 |
Fixed |
S+88 |
99.75 |
|
X1 |
$503,792,740 |
8.94 |
0.490 |
WAC IO |
Not Offered |
Not Offered |
|
AL |
$548,654,698 |
15.29 |
3.273 |
Fixed |
S+120 |
102.00 |
|
X2 |
$548,654,698 |
5.71 |
2.695 |
WAC IO |
Not Offered |
Not Offered |
|
Total |
$1,052,447,438 |
|
Group 1 Collateral |
|
|
UPB: |
$503,792,740 |
|
Collateral: |
46 Fannie Mae DUS MBS |
|
Geographic Distribution: |
CA (27.59%), TX (20.26%), NC (14.33%) |
|
Weighted Average |
|
|
Debt Service Coverage Ratio (DSCR): |
1.53x |
|
Weighted Average |
|
|
Loan-to-Value (LTV): |
69.2% |
|
Group 2 Collateral |
|
|
UPB: |
$548,654,698 |
|
Collateral: |
110 Fannie Mae DUS MBS |
|
Geographic Distribution: |
NY (40.65%), NJ (13.43%), CA (10.69%) |
|
Weighted Average |
|
|
Debt Service Coverage Ratio (DSCR): |
1.93x |
|
Weighted Average |
|
|
Loan-to-Value (LTV): |
49.0% |
|
Settlement Date: |
April 29, 2016 |
|
Lead Manager: |
Credit Suisse |
|
Co-Managers: |
Nomura |
|
KGS-Alpha Capital Markets | |
|
Mischler Financial Group |
For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2016-M4) available on the Fannie Mae GeMS Archive page on www.fanniemae.com.
Certain statements in this release may be considered forward-looking statements within the meaning of federal securities laws. In addition, not all securities will have the characteristics discussed in this release. Before investing in any Fannie Mae issued security, you should read the prospectus and prospectus supplement pursuant to which such security is offered. You should also read our most current Annual Report on Form 10-K and our reports on Form 10-Q and Form 8-K filed with the U.S. Securities and Exchange Commission ("SEC") available on the Investor Relations page of our Web site at www.fanniemae.com and on the SEC's Web site at www.sec.gov.
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SOURCE Fannie Mae
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