Freddie Mac is offering its fourth structured passthrough certificates (K Certificates) deal backed by multifamily mortgages with a seven-year term.
The deal will offer approximately $1.0 billion in K Certificates, which are expected to price the week of Nov. 7 and settle on or about Nov. 29.
The K-704 Certificates will be offered to the market by a syndicate of dealers led by Merrill Lynch and Deutsche Bank Securities as co-lead managers and joint bookrunners for the transaction.
Barclays Capital, Jefferies & Co., JPMorgan Securities, Morgan Stanley and Wells Fargo Securities will serve as co-managers for the transaction.
The K-704 Certificates are backed by 65 recently-originated multifamily mortgages and are guaranteed by Freddie Mac.
Rating agencies Fitch Ratings and Moody's Investors Service will rate the three senior classes of K-704 Certificates, which are each expected to receive a rating of 'AAA(sf)' and 'Aaa(sf)', respectively.
Freddie Mac has brought to market 11 K-deals this year, with an issuance size of about $1 billion each. They feature a wide range of investor options with stable cash flows and a structured credit enhancement. K-deals include guaranteed senior and interest only classes.