Freddie Mac is marketing $1.2 billion of structured pass-through certificates that are backed by fixed-rate multifamily mortgages with a seven-year term, according to a press release.
This is Freddie Mac's fifth K Certificate offering this year. Barclays and Credit Suisse Securities are co-lead managers on the deal. Guggenheim Securities, Jefferies, Stern Brothers & Co. and Wells Fargo Securities are the co-managers.
The K-715 Certificates are backed by 90 recently originated multifamily mortgages and are guaranteed by Freddie Mac. The loans have principal balances that range from $1.4 million to $71.4 million for the largest loan, which is secured by the leasehold interest in The Lucky Apartments (4.9%), a 359-unit (1,295 bed) high-rise student housing property that is located on the University of Wisconsin campus.
The capital structure offers two senior principal and interest classes, a senior interest-only class and a junior interest-only class. Kroll Bond Rating Agency and Moody's Investors Service have assigned preliminary AAA’/ Aaa’ ratings, respectively to the senior notes.
The K-715 Trust will also issue certificates consisting of the Class B, C, D, X2-A, X2-B and R Certificates, which will not be guaranteed by Freddie Mac. The deal is expected to price this week.
