Freddie Mac has priced an offering of structured pass-through certificates, which are multifamily mortgage-backed securities.
The government-sponsored enterprise expects to issue about $586 million in K-F41 certificates. The certificates are expected to settle on or about Dec. 28.
The K-F41 certificates will not be rated and will include one senior principal and interest class, one interest-only class, and one class entitled to static prepayment premiums. The K-F41 certificates are backed by corresponding classes issued by the FREMF 2017-KF41 Mortgage Trust and guaranteed by Freddie Mac. The trust will also issue certificates consisting of class B, C and R certificates, which will not be guaranteed by Freddie Mac.
Credit Suisse Securities (USA) LLC is the lead manager and sole book runner. Drexel Hamilton LLC, Merrill Lynch Pierce Fenner & Smith Inc., J.P. Morgan Securities LLC and PNC Capital Markets LLC are co-managers.