Freddie Mac Announces K-011 Offering of $1 Billion In Multifamily Securities

Mar 14, 2011, 11:22 ET from Freddie Mac

MCLEAN, Va., March 14, 2011 /PRNewswire/ -- Freddie Mac (OTC Bulletin Board: FMCC) today announced a new offering of Structured Pass-Through Certificates ("K Certificates"), multifamily mortgage-backed securities.  The company expects to offer approximately $1 billion in K Certificates ("K-011 Certificates"), which are expected to price the week of March 21, 2011, and settle on or about March 31, 2011.  

The K-011 Certificates will be offered to the market by a syndicate of dealers led by Deutsche Bank Securities Inc. and Bank of America Merrill Lynch as Co-Lead Managers and Joint Bookrunners for the transaction. Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. Incorporated and Wells Fargo Securities LLC have been named as Co-Managers for the transaction.  The K-011 Certificates are backed by 76 recently originated multifamily mortgages and are guaranteed by Freddie Mac.

"As the third Freddie Mac K-Deal of the year, K-011 demonstrates our commitment to maintaining periodic issuance throughout the year," said David Brickman, Freddie Mac vice president of Multifamily CMBS Capital Markets.

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.  

The preliminary offering circular supplement relating to the K-011 Certificates can be found at http://www.freddiemac.com/mbs/data/k011oc.pdf.  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, 2010, filed with the Securities and Exchange Commission ("SEC") on February 24, 2011, and all documents that Freddie Mac files with the SEC pursuant to Section 13(a), 13(c) or 14 of the Securities Exchange Act of 1934, 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, 2010 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. 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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