Freddie Mac Announces First Multifamily Seniors Housing Securities Offering
MCLEAN, VA -- (Marketwired) -- 04/29/13 -- Freddie Mac (OTCQB: FMCC)
today announced its first offering of Structured Pass-Through
Certificates ("K Certificates") backed exclusively by multifamily
mortgages on seniors housing properties. The company expects to offer
approximately $369 million in K Certificates ("K-S01 Certificates"),
which are expected to price mid- to late-week of April 29, 2013, and
settle on or about May 14, 2013. This is Freddie Mac's seventh K
Certificate offering this year, and its first one backed exclusively
by seniors housing collateral.
The K-S01 Certificates will be offered to the market by Wells Fargo
Securities, LLC as lead manager and sole bookrunner. Barclays Capital
Inc., Credit Suisse Securities (USA) LLC, Merrill Lynch, Pierce,
Fenner & Smith Incorporated, and J. P. Morgan Securities LLC will
serve as co-managers.
The K-S01 Certificates are backed by 27 multifamily mortgages and are
guaranteed by Freddie Mac. The K-S01 Certificates include two senior
principal and interest classes and a senior interest only class, and
will not be rated.
"We are very proud to announce our first K-Deal backed entirely by
Seniors Housing loans," said Mitchell Resnick, vice president of
Freddie Mac Multifamily Loan Pricing and Securitization. "Freddie Mac
Multifamily is expanding our securitization series while bringing
liquidity to the Seniors Housing market and selling a substantial
portion of the risk to private investors through the K-Deal
Resnick added, "The sponsors behind these loans are experienced
property owners, operators and managers who understand the unique
housing needs of this rental segment. The Freddie Mac seniors program
has historically maintained strong credit metrics and performance
throughout various commercial real estate cycles all while serving a
very important sector of the multifamily market."
Freddie Mac Multifamily sources its senior housing loans from a
select group of experienced multifamily lenders with extensive
experience in the seniors housing market. Freddie Mac purchases a
variety of seniors housing loans including those backed by
independent living properties, assisted living properties, memory
and senior properties with a limited amount of
skilled nursing care. In 2012 Freddie Mac purchased $650 million in
seniors housing mortgages.
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-S01
Certificates can be found at
http://www.freddiemac.com/mbs/data/ks01oc.pdf. A Freddie Mac seniors
housing specific investor presentation and a general multifamily
investor presentation on the K Certificate deal structure and
multifamily loan portfolio performance data are available at
FreddieMac.com. Freddie Mac also has an online tool for investors and
analysts, Multifamily Securities Investor Access, 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,
2012, filed with the Securities and Exchange Commission ("SEC") on
February 28, 2013; 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, 2012, 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
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, 2012, 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,
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