2013-03-20 20:54:58 - Swap advisors create transaction transparency by having access to the same live market data as the banks so that no hidden bank fees can be included when unwinding an interest rate swap.
Swap Negotiators, an advocate for commercial borrowers, recently represented a large urology group in San Antonio, Texas unwinding an interest rate swap transaction and saving the group more than $70,000 in undisclosed bank fees.
In an effort to refinance its real estate debt, a large urology group became frustrated because of what appeared to be an excessive swap termination fee. In the eleventh hour, the group engaged Swap Negotiators as their representative for the transaction.
unwinding a swapSwap Negotiators acts as an intermediary between borrowers and their banks on all types of swap transactions including executing, modifying, unwinding, and assigning.
“An important part of our team consists of former bankers that worked on the derivatives side of the bank. They help us to
create transparency and bring expertise to all borrowers when considering strategies and executing interest rate hedges,” stated Andy Johnson, an Associate with Swap Negotiators. “We utilize the same live tools as the banks so that no hidden fees can be included.”
Unwinding an Interest Rate Swap
In this particular transaction to unwind an interest rate swap, the Texas urology group had been quoted an unwind fee of $1,518,000. Swap Negotiators was able to conclude the unwind at $1,447,000; a difference of more than $70,000. Additionally, Swap Negotiators’ sister company, CMAC, negotiated to include the unwind value in the refinanced debt.
“Although some of the savings were market-driven, the majority were not,” said Andy Johnson, an associate with Swap Negotiators. “The bank backed off of their payoff once Swap Negotiators had created transparency in the transaction.”
About Swap Negotiators
Located in Central Florida, Swap Negotiators provides advocacy, expertise, and advice on interest rate swap contracts for commercial borrowers and works in partnership with banks, commercial real estate attorneys and mortgage brokers to provide transparent pricing, valuations and ongoing support for the life of a swap. Additional information about Swap Negotiators can be obtained by calling (407) 264-7264 or by visiting www.swapnegotiators.com.