Freddie Mac Announces Fourteenth Multifamily Securities Offering This Year, K-021

MCLEAN, Va., Oct. 15, 2012 /PRNewswire/ -- [ Freddie Mac ] (OTC: FMCC) today announced a new offering of Structured Pass-Through Certificates ("[ K Certificates ]"), which are multifamily mortgage-backed securities. The company expects to offer approximately $1.2 billion in K Certificates ("K-021 Certificates"), which are expected to price the week of October 15, 2012, and settle on or about November 8, 2012. This is Freddie Mac's fourteenth K Certificate offering this year.

The K-021 Certificates are backed by 81 recently-originated multifamily mortgages and are guaranteed by Freddie Mac. The K-021 Certificates will be offered to the market by a syndicate led by Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities LLC as co-lead managers and joint bookrunners. Credit Suisse Securities (USA) LLC, Jefferies & Company, Inc., Morgan Stanley & Co. LLC, and Wells Fargo Securities, LLC will serve as co-managers.

The K-021 Certificates include two senior principal and interest classes, one senior interest only class and a junior interest only class. Fitch, Inc. and Morningstar Credit Ratings, LLC have been engaged to rate the three senior classes of K-021 Certificates, which are each expected to receive a rating of "AAA(sf)" and "AAA", respectively, from each rating agency, subject to on-going monitoring.

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 include guaranteed senior principal and interest, and interest only classes.

The preliminary offering circular supplement relating to the K-021 Certificates can be found at [ http://www.freddiemac.com/mbs/data/k021oc.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, 2011, filed with the Securities and Exchange Commission ("SEC") on March 9, 2012; 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, 2011, 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, 2011, [ http://www.freddiemac.com/investors/infostat ] 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 homebuyers and is one of the largest sources of financing for multifamily housing. [ www.FreddieMac.com ]. Twitter: @FreddieMac

SOURCE Freddie Mac

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Freddie Mac Announces Fourteenth Multifamily Securities Offering This Year, K-021