Freddie Macsaid April 4 that it priced a new offering of structured pass-through certificates,which are multifamily mortgage-backed securities.
The company expects to issue approximately $1.2 billion in K-LH3certificates, which are backed by 27 properties indirectly controlled by Lone StarReal Estate Fund IV (U.S.) LP. The certificates are expected to settle on or aboutApril 15.
The certificates include one senior principal and interest classand one interest-only class. The certificates are backed by corresponding classesissued by the FREMF 2016-KLH3 Mortgage Trust and are guaranteed by Freddie Mac.The trust will also issue certificates consisting of the class B, C and R certificates,which will be subordinate to the classes backing the K-LH3 certificates and willnot be guaranteed by Freddie Mac.
Goldman Sachs & Co. and Wells Fargo Securities LLC are co-leadmanagers and joint book runners. Barclays Capital Inc., Citigroup Global CapitalMarkets Inc., Jefferies LLC and Stern Brothers & Co. are co-managers.