Freddie Mac Settles its First SLST Securitization of 2019


Freddie Mac has settled its first Seasoned Loans Structured Transaction Trust (SLST) offering of 2019 – a securitization of approximately $1.2 billion including both guaranteed senior and non-guaranteed subordinate securities backed by a pool of seasoned re-performing loans (RPLs).

The transaction includes approximately $942 million in guaranteed senior certificates and approximately $276 million in non-guaranteed subordinate certificates.

The guaranteed senior certificates priced on May 21 through a syndicated process. The right to purchase the subordinate certificates was awarded through a competitive auction in March to Hains Point LLC, managed by Kah Capital Management (a minority-owned business).

The underlying collateral backing the certificates consists of 7,604 fixed- and step-rate modified seasoned re-performing and moderately delinquent loans.

The loans are serviced by Select Portfolio Servicing Inc.

JP Morgan Securities LLC and Wells Fargo Securities served as co-lead managers and joint bookrunners, and BofA Securities, Inc., Citigroup Global Markets Inc., Nomura Securities International, Inc., and Mischler Financial Group, Inc., (a minority-owned broker dealer certified as a Service-Disabled Veteran Business Enterprise), served as the co-managers.

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