trending Market Intelligence /marketintelligence/en/news-insights/trending/AuPSRtnwyOgcpLxQKqfxEA2 content esgSubNav
In This List

Freddie Mac prices $966M offering of structured pass-through certificates

Blog

Balance Sheet Strategy in an Unusual Rate Environment

Blog

Investors' Views of the Industry Today & the Outlook for Tomorrow

Podcast

Street Talk | Episode 98: Regulatory scrutiny having cooling effect on community bank M&A

Blog

Insight Weekly: M&A outlook; US community bank margins; green hydrogen players' EU expansion


Freddie Mac prices $966M offering of structured pass-through certificates

Freddie Mac priced an offering of approximately $966 million of structured pass-through certificates, which are multifamily mortgage-backed securities.

The K-L05 certificates, which are expected to settle on or about Aug. 12, are backed by two groups of loans. One group consists of 16 fixed-rate mortgages backed by 16 properties and the other consists of six crossed fixed-rate mortgages backed by six properties. The transaction collateral is part of Freddie Mac's K-L series of certificates, which are backed by large loans or pools of related mortgage loans on multifamily properties.

The K-L05 certificates will not be rated and will include three senior principal and interest classes and three interest-only classes.

The certificates are backed by corresponding classes issued by FREMF 2019-KL05 Mortgage Trust and guaranteed by Freddie Mac. The trust will also issue certificates consisting of B-P, class C-P, class B-HG, class C-HG and class R certificates, which will not be guaranteed by Freddie Mac and will not back any class of K-L05 certificates.

Credit Suisse Securities (USA) LLC and Cantor Fitzgerald & Co. are acting as co-lead managers and joint book runners for the offering. Academy Securities Inc., Amherst Pierpont Securities LLC, Barclays Capital Inc. and Wells Fargo Securities LLC are serving as co-managers.