Freddie to offer $1.1 billion in multifamily MBS
Freddie Mac will offer $1.1 billion in structured pass-through securities backed by multifamily mortgages, or K Certificates. The government-sponsored enterprise expects to price the offering the week of May 16 and settle around May 26. A group of dealers will offer the certificates, including Bank of America Merrill Lynch, and Barclays Capital, which are co-lead managers and bookrunners for the transaction. Freddie named Citigroup (C), Goldman Sachs (GS), Morgan Stanley (MS) and Wells Fargo (WFC) as co-managers for the transaction. The certificates will be backed by 81 recently originated multifamily loans, guaranteed by Freddie. It will be the fifth K Certificate offering this year. "K Certificates provide Freddie Mac with an efficient vehicle to securitize multifamily loans. The certificates provide investors with stable cash flows, structured credit enhancement and the Freddie Mac guarantee," the GSE said. Write to Jon Prior. Follow him on Twitter @JonAPrior.