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.


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