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Freddie Mac prices 2 structured pass-through certificates

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Freddie Mac prices 2 structured pass-through certificates

Freddie Mac priced two offerings of structured pass-through securitizations backed by multifamily mortgages or B-note multifamily mortgages, respectively.

A $958 million offering of K-F40 certificates is expected to settle on or about Dec. 28.

The K-F40 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-F40 certificates are backed by corresponding classes issued by the FREMF 2017-KF40 Mortgage Trust and guaranteed by Freddie Mac. The trust will also issue certificates consisting of class B, C and R certificates and will not be guaranteed by Freddie Mac.

The co-lead managers and joint book runners are Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC. The co-managers are Citigroup Global Markets Inc., Jefferies LLC, Merrill Lynch Pierce Fenner & Smith Inc. and Samuel A. Ramirez & Co. Inc.

A $182 million offering of K-J18 certificates are backed by underlying collateral consisting of supplemental or B-note multifamily mortgages. The certificates are expected to settle on or about Dec. 28.

The K-J18 certificates are backed by corresponding classes issued by the FREMF 2017-KJ18 Mortgage Trust and guaranteed by Freddie Mac. The trust will also issue certificates consisting of class B and class R certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-J18 certificates.

The lead manager and sole book runner is Morgan Stanley & Co. LLC. Academy Securities Inc., Cantor Fitzgerald & Co., Credit Suisse Securities (USA) LLC and Merrill Lynch Pierce Fenner & Smith Inc. are co-managers.