Freddie Mac Announces New Offering of Guaranteed Structured Pass-Through K Certificates

K-007 Structured Securities Backed By Multifamily Mortgages

Jun 07, 2010, 10:21 ET from Freddie Mac

MCLEAN, Va., June 7 /PRNewswire-FirstCall/ -- Freddie Mac (NYSE: FRE) today announced a new offering of Structured Pass-Through Certificates ("K Certificates"), multifamily mortgage-backed securities that help provide liquidity, stability and affordability to the nation's multifamily housing market. The company expects to offer approximately $1 billion in K Certificates ("K-007 Certificates"), which are expected to price on or about June 11, 2010, and settle on or about June 24, 2010.  

The K-007 Certificates will be offered to the market by a network of dealers led by Bank of America Merrill Lynch and Deutsche Bank Securities Inc. as Co-Lead Managers and Joint Bookrunners for the transaction. Barclays Capital Inc., Goldman Sachs & Co., J.P. Morgan Securities Inc., Jefferies & Company, Inc. and Wells Fargo Securities LLC have been named as Co-Managers for the transaction.  The K-007 Certificates are backed by 83 recently originated multifamily mortgages and are guaranteed by Freddie Mac.  The loans were originated using Freddie Mac's Capital Markets Execution(SM) (CME) product.

K Certificates provide Freddie Mac with an efficient vehicle to securitize multifamily loans. They provide investors structured guaranteed securities with stable cash flows and with both structured credit enhancement and the Freddie Mac guarantee.  The K-007 offering represents the third K-deal of the year and is consistent with Freddie Mac's intention to go to market with six K-deals this year.  Freddie Mac's most recent K Certificates offering, K-006, backed by approximately $1.1 billion of multifamily loans, settled on April 6, 2010.

The preliminary offering circular supplement relating to the K-007 Certificates can be found at http://www.freddiemac.com/mbs/data/k007oc.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, 2009, filed with the Securities and Exchange Commission ("SEC") on February 24, 2010, 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, 2009 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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