Freddie Mac Multifamily Reaches $80 Billion Securitization Milestone and Announces Ninth Securities Offering This Year, K-F04

Marketwired

MCLEAN, VA--(Marketwired - Aug 4, 2014) -  Freddie Mac (OTCQB: FMCC) today announced a new offering of Structured Pass-Through Certificates ("K Certificates"), backed exclusively by LIBOR-based, floating rate multifamily mortgages with five- and seven-year terms. The company expects to offer approximately $1.2 billion in K Certificates ("K-F04 Certificates"), which are expected to price the week of August 4, 2014, and settle on or about August 25, 2014. This is Freddie Mac's ninth K Certificate offering this year. The company also reached an important milestone of securitizing more than $80 billion in multifamily mortgages through its K-Deal program.

"Achieving $80 billion in K-Deal securitizations is an important milestone for us," said Mitchell Resnick, vice president of Freddie Mac Multifamily Capital Markets. "We've gone from issuing two K-Deals in our first year to 19 last year, and have grown the investor base."

Resnick added, "Since the program's inception in 2009, we have financed over 4,400 properties and 1.2 million units, the majority of which are affordable. While we continue to finance and help preserve an adequate supply of rental housing, we also employ a business strategy that shifts the risk away from the taxpayer by selling it to private investors."

The K-F04 Certificates are backed by recently originated floating rate multifamily mortgages. The K-F04 Certificates will be offered to the market by a syndicate of dealers led by J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated as co-lead managers and joint bookrunners. Barclays Capital Inc., CastleOak Securities, L.P., Jefferies LLC and Wells Fargo Securities, LLC will serve as co-managers.

The K-F04 Certificates will not be rated and include one senior principal and interest class and one interest only class. The K-F04 Certificates are backed by corresponding classes from the FREMF 2014-KF04 Mortgage Trust ("K-F04 Trust"). The K-F04 Trust will also issue class B, C and R certificates, which will be subordinate to the classes backing the K-F04 Certificates and will not be guaranteed by Freddie Mac.

Freddie Mac is a leading issuer of agency-guaranteed structured multifamily securities. K Certificates feature a wide range of investor options with stable cash flows and a structured credit enhancement. K-Deals typically include guaranteed senior principal and interest, and interest only classes.

The preliminary offering circular supplement relating to the K-F04 Certificates can be found at http://www.freddiemac.com/mbs/data/kf04oc.pdf. A Freddie Mac multifamily investor presentation on the K Certificate deal structure and multifamily loan portfolio performance data is available at FreddieMac.com. Freddie Mac also has an online tool for investors and analysts, Multifamily Securities Investor Access. This is a central database that houses all post-securitization data from Investor Reporting Packages to help investors and analysts monitor K-Deal performance.

This announcement is not an offer to sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac's Annual Report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission ("SEC") on February 27, 2014; all other reports Freddie Mac filed with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 ("Exchange Act") since December 31, 2013, excluding any information "furnished" to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information "furnished" to the SEC on Form 8-K.

Freddie Mac's press releases sometimes contain forward-looking statements. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company's Annual Report on Form 10-K for the year ended December 31, 2013, and its reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investor Relations page of the company's Web site at www.FreddieMac.com/investors and the SEC's Web site at www.sec.gov.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.

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