Freddie Mac announced a $1 billion offering of structured passthrough certificates (K Certificates), multifamily MBS, which are expected to price the week of Jan.17 and settle on Feb 10.
The K Certificates will be offered to the market by a network of dealers led by JPMorgan Securities and Wells Fargo Securities as co-lead managers and joint bookrunners for the deal.
Barclays Capital, Citigroup Global Markets, Credit Suisse Securities, Deutsche Bank Securities, Goldman Sachs, Jefferies & Co., and Bank of America Merrill Lynch have been named as the offering's co-managers.
The K Certificates are backed by 76 recently originated multifamily mortgages and are Freddie Mac-guaranteed.
"We are very pleased to announce our first K-Deal for 2011, which represents the first of many deals we expect to issue this year as our securitization activity grows," said David Brickman, vice president of multifamily CMBS capital markets for Freddie Mac. "This offering also includes a new feature — this is the first K-deal in which two rating agencies were engaged to provide conventional public ratings."
K Certificates offer Freddie Mac with an efficient vehicle to securitize multifamily loans. They provide buyers with structured guaranteed securities that have stable cashflows, structured credit enhancement, and the Freddie Mac guaranty, according to a Freddie Mac press release.