Freddie Mac priced a $1.6 billion offering of guaranteed senior and unguaranteed subordinate securities under its Seasoned Credit Risk Transfer Trust.
The issuance is expected to settle on June 13. It consists of approximately $1.5 billion in guaranteed senior certificates and approximately $127 million in unguaranteed mezzanine and subordinate certificates.
The collateral backing the certificates are 8,628 fixed- and step-rate modified seasoned reperforming loans.
The loans are serviced by Specialized Loan Servicing LLC.
Citigroup Global Markets Inc. and Merrill Lynch Pierce Fenner & Smith Inc. are co-lead managers and joint book runners. Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Samuel A. Ramirez & Co. Inc. are co-managers.
