Freddie Mac Prices $779 Million Multifamily K-Deal, K-F121

BY GlobeNewswire | AGENCY | 09/15/21 10:30 AM EDT

MCLEAN, Va., Sept. 15, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (FMCC) has priced a new offering of Structured Pass-Through Certificates (K Certificates), which includes a class of floating rate bonds indexed to the Secured Overnight Financing Rate (SOFR). The approximately $779 million in K?Certificates (K-F121 Certificates) are expected to settle on or about September 23, 2021. The K-F121 Certificates are backed by floating-rate multifamily mortgages with 7-year terms, which are SOFR-based.

K-F121 Pricing

Amount (mm)
CouponDollar Price
AS$779.7446.711830-day SOFR avg + 18100.000


  • Co-Lead Managers and Joint Bookrunners: Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC
  • Co-Managers: CastleOak Securities, L.P., Deutsche Bank Securities Inc., Mizuho Securities USA LLC and Wells Fargo Securities, LLC

Related Links

  • The K-F121 preliminary offering circular supplement:
  • Freddie Mac Multifamily Securitization Overview
  • Multifamily Securities Investor Access database of post-securitization data from Investor Reporting Packages

The K-F121 Certificates will not be rated and will include one senior principal and interest class and one interest-only class that is also entitled to static prepayment premiums. The K-F121 Certificates are backed by corresponding classes issued by the FREMF 2021-KF121 Mortgage Trust (KF121 Trust) and guaranteed by Freddie Mac (FMCC). The KF121 Trust will also issue certificates consisting of the Class CS and R Certificates, which will be subordinate to the classes backing the K-F121 Certificates and will not be guaranteed by Freddie Mac (FMCC).

Freddie Mac Multifamily is a leading issuer of agency-guaranteed structured multifamily securities. K-Deals are part of the company?s business strategy to transfer a portion of the risk of losses away from taxpayers and to private investors who purchase the unguaranteed subordinate bonds. K Certificates typically feature a wide range of investor options with stable cash flows and structured credit enhancement.

This announcement is not an offer to sell any Freddie Mac (FMCC) 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, 2020, filed with the Securities and Exchange Commission (SEC) on February 11, 2021; all other reports Freddie Mac (FMCC) filed with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act) since December 31, 2020, excluding any information "furnished" to the SEC on Form 8-K; and all documents that Freddie Mac (FMCC) 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. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond the company?s control. Management?s expectations for the company?s future necessarily involve a number of assumptions, judgments and estimates, and various factors could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements. These assumptions, judgments, estimates and factors are discussed in the company?s Annual Report on Form 10-K for the year ended December 31, 2020, and its reports on Form 10-Q and Form 8-K, which are available on the Investor Relations page of the company?s Web site at? the SEC?s website at? The company undertakes no obligation to update forward-looking statements it makes to reflect events or circumstances occurring after the date of this press release. The multifamily investors section of the company?s Web site at will also be updated, from time to time, with any information on material developments or other events that may be important to investors, and we encourage investors to access this website on a regular basis for such updated information.

The financial and other information contained in the documents that may be accessed on this page speaks only as of the date of those documents. The information could be out of date and no longer accurate. Freddie Mac (FMCC) undertakes no obligation, and disclaims any duty, to update any of the information in those documents.

Freddie Mac (FMCC) makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, and taxpayers. Learn more at, Twitter @FreddieMac and Freddie Mac's (FMCC) blog

Luba Kim-Reynolds


Image: Primary Logo

Source: Freddie Mac (FMCC)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.