By Wendy Van Sickle
Columbus, Ohio, June 21 – Freddie Mac priced a new $327 million offering of credit risk transfer securities backed by tax-exempt loans (TELs) made by state or local housing agencies and secured by affordable rental housing, according to a company announcement.
This is Freddie Mac’s 10th ML certificate offering and its fourth sustainability bond.
The new ML certificates include the following:
• $173.97 million of 2.032% class A-US senior principal and interest certificates with a weighted average life of 12.99 years;
• $153.93 million of 2.046% class A-CA senior principal and interest certificates with a weighted average life of 13.27 years;
• $173.97 million of 2.055% class X-US interest-only certificates with a weighted average life of 12.61 years; and
• $153.93 million of 1.518% class X-CA interest-only certificates with a weighted average life of 13.01 years.
The certificates will be issued by Frete 2020-ML-10 Trust. The trust will also issue class B-US and B-CA certificates, but those will not be guaranteed by Freddie Mac, according to the press release.
The certificates are expected to settle on or about June 24.
Proceeds from the securities will be used to finance multifamily properties that finance affordable housing to low-to-moderate-income families; may have features, or are located in areas, that further economic opportunity for residents; and may include some environmental impact features.
Wells Fargo Securities, LLC and Jefferies LLC are the bookrunners and lead managers.
Bancroft Capital, LLC, J.P. Morgan Securities LLC, Piper Sandler & Co. and Stifel, Nicolaus & Co., Inc. are co-managers.
The government-backed mortgage lender is based in McLean, Va.
| Issuer: | Frete 2020-ML-10 Trust
|
| Guarantor: | Freddie Mac
|
| Amount: | $327 million
|
| Description: | Credit risk transfer securities (ML-10 certificates)
|
| Bookrunners: | Wells Fargo Securities, LLC and Jefferies LLC
|
| Co-managers: | Bancroft Capital, LLC, J.P. Morgan Securities LLC, Piper Sandler & Co. and Stifel, Nicolaus & Co., Inc.
|
| Trade date: | June 21
|
|
|
| Class A-US
|
| Amount: | $173.97 million
|
| Average maturity: | 12.99 years
|
| Coupon: | 2.032%
|
| Yield: | 1.681%
|
| Spread: | Minus 1 bp
|
| Dollar price: | $103.9989
|
|
|
| Class A-CA
|
| Amount: | $153.93 million
|
| Average maturity: | 13.27 years
|
| Coupon: | 2.046%
|
| Yield: | 1.701%
|
| Spread: | 0 bps
|
| Dollar price: | $103.9913
|
|
|
| Class X-US
|
| Amount: | $173.97 million
|
| Average maturity: | 12.61 years
|
| Coupon: | 2.055%
|
| Yield: | 3.225%
|
| Spread: | 160 bps
|
| Dollar price: | $21.4775
|
|
|
| Class X-CA
|
| Amount: | $153.93 million
|
| Average maturity: | 12.66 years
|
| Coupon: | 1.518%
|
| Yield: | 3.278%
|
| Spread: | 165 bps
|
| Dollar price: | $15.8206
|
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