Freddie Mac Plans $1.37B Multifamily CMBS

The deal will bring total issuance, of the so-called K Certificates to $57 billion, the originator said in a press release on Monday.

In the latest deal, the K-029 Certificates are backed by 87 recently-originated multifamily mortgages and are guaranteed by Freddie Mac.

The deal is structured with two senior principal and interest classes, one senior interest only class and a junior interest only class. Fitch Ratings and DBRS have assigned triple-A ratings to the notes.    

Wells Fargo and Morgan Stanley are co-lead managers and joint bookrunners on the deal. Barclays Capital, Credit Suisse, Jefferies LLC and Merrill Lynch, Pierce, Fenner & Smith will serve as co-managers.

The deal is expected to price at the end of the week.  

"We have successfully securitized more than $57 billion in multifamily loans since the program began in 2009," said Mitchell Resnick, vice president of Freddie Mac multifamily loan pricing and securitization. "We are achieving the K program's main goal of attracting private capital to the market by placing the subordinate classes with third party investors. This structure has allowed Freddie Mac to dramatically reduce its risk and use its guarantee to only insure the transactions' senior portion."