Success Stories

Meeting a Cash Flow Crisis

Restructuring The Swap To Meet Loan Covenants

The Situation
The borrower had experienced a decrease in income that caused a strain on cash flow and a technical default in his loan debt service coverage covenant. The borrower required temporary debt service relief to implement cost cutting measures and regain positive cash flow.

The Solution
Swap Negotiators negotiated a restructuring of the existing swap and created a lower interest rate for the first 24 months which then stepped up to a higher rate. The net interest cost remained unchanged, but the revised cash flows met the debt service requirements and kept the borrower from default.