Freddie Mac Plans to Sell Bonds Backed by Apartment Loans

Freddie Mac, the mortgage-finance company under U.S. government control, plans to sell about $1 billion of securities backed by loans on apartment buildings.

The debt, which will be the fourth of six such transactions the company expects this year, is likely to be sold around Sept. 15, McLean, Virginia-based Freddie Mac said today in an e-mailed statement.

Freddie Mac is guaranteeing investors who buy the debt will be paid even if the underlying mortgages default, the company said. Buyers of the K-008 Certificates also will be in line to be paid ahead of other creditors.

Goldman Sachs Group Inc. and JPMorgan Chase & Co. will lead the underwriting, according to the statement.

To contact the reporter on this story: Jody Shenn in New York at jshenn@bloomberg.net

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