Freddie Mac plans to issue its third multifamily CMBS this year; a $900 million deal that will be backed by mortgages with a 5-year term.
The deal, K-502 Certificates, is backed by 41 recently-originated multifamily mortgages that are guaranteed by Freddie Mac. The capital structure includes two senior principal and interest classes, two senior interest only classes and a junior interest only class. Moody's Investors Service and Standard & Poor's have assigned ‘Aaa’/ ‘AAA’ ratings to the four senior classes of K-502 Certificates.
Barclays Capital and J. P. Morgan are co-lead managers and joint bookrunners on the transaction. Credit Suisse, Jefferies & Company, Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Morgan Stanley serve as co-managers. The notes are expected to price on or about March 1, 2013, and settle on or about March 14, 2013.
This is the second multifamily CMBS deal backed exclusively by 5-year collateral issued by Freddie Mac. The federal home loan mortgage corporation has issued $46 billion in securities since it began the program in June 2009.
