Freddie Mac has a new offering of its structured passthrough certificates that are backed exclusively by multifamily mortgages with a 7-year term worth roughly $1 billion.
The notes are expected to price this week and settle on or about June 7. This is the GSE's seventh K-Certificate offering this year.
The K-708 Certificates will be offered to the market by a syndicate of dealers led by Barclays Capital Inc. and Morgan Stanley as co-lead managers and j
oint bookrunners. Credit Suisse Securities, JPMorgan Securities, Jefferies & Co., UBS and Wells Fargo Securities will serve as co-managers.
The K-708 Certificates are backed by 57 recently-originated multifamily mortgages and are guaranteed by Freddie Mac. The K-708 Certificates include two senior principal and interest classes, a senior interest only class and a junior interest only class.
Fitch Ratings and Morningstar Credit Ratings, will rate the three senior classes of K-708 Certificates, which are each expected to receive a rating of "AAA(sf)" and "AAA", respectively, subject to on-going monitoring.
