NOS Wellness, LLC, a subsidiary of Buckingham Companies, recently retained McGuire Sponsel to ensure appropriate strategy, documentation, structure and pricing of a lender-mandated interest rate hedge. The lender was requiring an interest rate swap to hedge against the impact of rising interest rates on a debt refunding. The lender, however, provided limited guidance to the chief financial officer and company regarding alternative approaches in structure, pricing and tenor.
McGuire Sponsel worked closely with NOS Wellness, LLC to develop an independent strategy for entering into the interest rate swap. Using McGuire Sponsel’s expertise and infrastructure, NOS Wellness, LLC was able to develop an appropriate swap strategy while gaining price transparency of the required swap transaction. NOS Wellness, LLC was able to obtain independent, unbiased advice thereby reducing the bank’s targeted profit by 46 percent and providing the developer with annual cash flow savings.