Freddie Mac's new offering of Structured Pass-Through Certificates backed exclusively by multifamily mortgages with a 7-year term will be sized at $1.0 billion.
The notes are expected to price the week of June 4, 2012, and settle on or about June 27, 2012. This is Freddie Mac's eighth K Certificate offering this year.
The K-709 Certificates will be offered to the market by a syndicate of dealers led by J.P. Morgan Securities and Wells Fargo Securities, as co-lead managers and joint bookrunners. Merrill Lynch, Pierce, Fenner & Smith; Guggenheim Securities, LLC; Morgan Stanley & Co. LLC; and Sandler O'Neill + Partners, will serve as co-managers.
The notes are backed by 54 recently-originated multifamily mortgages and are guaranteed by Freddie Mac. The notes also include two senior principal and interest classes, a senior interest only class and a junior interest only class.
Fitch Ratings and Kroll have assigned the three senior classes of K-709 Certificates an expected rating of "AAA(sf)" and "AAA(sf)", respectively.