Freddie Mac has announced its sixth offering of Structured Passthrough Certificates or K Certificates backed exclusively by multifamily mortgages with a seven-year term.
The GSE expects to offer roughly $1 billion in K Certificates or K-706 Certificates that are expected to price this week and settle on or about Feb. 28. This is the agency's second K Certificate transaction in 2012.
Co-lead managers and joint bookrunners on the transaction are JPMorgan Securities and Barclays Capital.
Bank of America Merrill Lynch, Morgan Stanley, Guggenheim Securities, and Wells Fargo Securities are co-managers for the offering. The K-706 Certificates are backed by 61 recently-originated and Freddie Mac-guaranteed multifamily mortgages.
Fitch Ratings and Moody's Investors Service have rated the three senior classes of K-706 Certificates, which are both expected to receive a 'AAA(sf)' rating.
For the preliminary offering circular supplement on the K-706 Certificates, please clicke here.
Meanwhile, other deals in the market this week include a $216 million American General Mortgage Loan Trust transaction or AGFMT 2010-1 led by BofA, according to Bloomberg.
In Canada, Royal Bank of Canada is selling a pre-placed, 144A credit card deal called Golden Credit Card Trust Series 2012-1 and Series 2012-2.
CarMax this afternoon sold its upsized transaction, increasing to $970 million from $750 million. For the related Securities and Exchange Commission filing on this deal, please click this link.
Ford Motor Credit Co. also sold its Ford Credit Master Owner Trust 2012-1 (FCMOT 2012-1) later Tuesday afternoon. The deal was upsized to $2.3 billion from $1 billion.
It is the largest 'AAA' floorplan offering for the sector since 2005 when the firm sold Ford Dealer Floorplan 2005-1 that came in at $2.3 billion.
For ASR's story on the transaction, please click here.