Freddie Mac recently priced a new offering of Structured Pass-Through Certificates (K Certificates), which are multifamily mortgage-backed securities.
The approximately $1 billion issuance of K Certificates (K-714 Certificates) is expected to settle on or about Jan. 28, says Freddie Mac.
K-714 Pricing is as follows:
Class A-1
Principal/Notional Amount (mm): $103.940
Weighted Average Life (Years): 3.33
Spread (bps): S + 40
Coupon: 2.0750%
Yield: 1.41806%
Dollar Price: 101.9987
Class A-2
Principal/Notional Amount (mm): $953.000
Weighted Average Life (Years): 6.48
Spread (bps): S + 43
Coupon: 3.0340%
Yield: 2.67883%
Dollar Price: 101.9963
Class X1
Principal/Notional Amount (mm): $1,056.940
Weighted Average Life (Years): 5.76
Spread (bps): T + 130
Coupon: 0.7566%
Yield: 3.30420%
Dollar Price: 4.0934
Class X3
Principal/Notional Amount (mm): $203.197
Weighted Average Life (Years): 6.51
Spread (bps): T + 320
Coupon: 1.7933%
Yield: 5.44787%
Dollar Price: 9.9753
Co-lead managers and joint bookrunners are Barclays Capital Inc. and RBS Securities Inc; co-managers are JP Morgan Securities LLC, Jefferies LLC, Mischler Financial Group Inc. and Wells Fargo Securities LLC; and ratings agencies are Moody's Investors Service Inc. and Morningstar Credit Ratings LLC.