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 $859 million in K Certificates (K-F118 Certificates) are expected to settle on or about August 19, 2021. The K-F118 Certificates are backed by floating-rate multifamily mortgages with 7-year terms, which are SOFR-based. The K-F118 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-F118 Certificates are backed by corresponding classes issued by the FREMF 2021-KF118 Mortgage Trust (KF118 Trust) and guaranteed by Freddie Mac. The KF118 Trust will also issue certificates consisting of the Class CS and R Certificates, which will be subordinate to the classes backing the K-F118 Certificates and will not be guaranteed by Freddie Mac. 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.