Freddie Mac is marketing a $1.2 billion multifamily CMBS offering expected to price during the week of January 7, according to a press release.
The K-024 certificates will securitize multifamily and commercial mortgage pass through certificates or other commercial mortgage backed securities. This is Freddie Mac's first offering this year.
The structure is backed by 74 recently-originated multifamily mortgages that are guaranteed by Freddie Mac. The K-024 Certificates will be offered to the market by a syndicate of dealers led by Wells Fargo Securities and Barclays Capital. Deutsche Bank Securities Inc., Jefferies & Company, Merrill Lynch, Pierce, Fenner & Smith and Morgan Stanley will serve as co-managers.
Freddie has issued over $43 billion through its four-year old program. The bonds are backed by either 10-, seven- or five-year fixed or floating rate mortgages using a senior/subordinate structure, as well as a fully wrapped deal.
The K-024 Certificates include two senior principal and interest classes, one senior interest only class and a junior interest only class. Moody's Investors Service and Morningstar Credit Ratings have been engaged to rate the three senior classes of K-024 Certificates, which are each expected to receive a rating of ‘Aaa’ and ‘AAA’ respectively.
