Freddie Mac 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 $829 million in K Certificates (K-F128 Certificates) are expected to settle on or about January 20, 2022. The K-F128 Certificates are backed by floating-rate multifamily mortgages with 10-year terms, which are SOFR-based.

The K-F128 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-F128 Certificates are backed by corresponding classes issued by the FREMF 2022-KF128 Mortgage Trust (KF128 Trust) and guaranteed by Freddie Mac. The KF128 Trust will also issue certificates consisting of the Class CS and R Certificates, which will be subordinate to the classes backing the K-F128 Certificates and will not be guaranteed by Freddie Mac.