Freddie Mac has announced its first offering of structured pass-through certificates (K Certificates) backed exclusively by multifamily mortgages with a five-year term. Freddie Mac plans to offer approximately $1.1 billion in K Certificates, which are expected to price this week and settle on or about April 11. This is Freddie Mac's fourth K Certificate offering this year.
‘In the first quarter of this year, we have brought four K deals to a vibrant Agency CMBS market,’ says Mitch Resnick, co-head of multifamily capital markets for Freddie Mac. ‘We are constantly looking for ways to enhance the scope of our lending and securities platforms in order to appeal to a variety of borrower and investor needs. This transaction, which is our first backed exclusively by five-year mortgages, continues this commitment.’
The K-501 Certificates will be offered to the market by a syndicate of dealers led by Wells Fargo Securities LLC and Morgan Stanley & Co. LLC as co-lead managers and joint bookrunners. Merrill Lynch, Pierce, Fenner & Smith Inc., Credit Suisse Securities (USA) LLC and Guggenheim Securities LLC will serve as co-managers. The K Certificates are backed by 50 recently originated multifamily mortgages and are guaranteed by Freddie Mac.
