Saved from a Bad Mistake
A large orthopedic medical practice in Tennessee was considering terminating a portion of its swap. The bank had quoted a termination fee which the client assumed was at market value. The Swap Negotiators analyzed the bank’s quote and found that the bank had added $75,000 more than the actual value as its profit. As a result, the client decided to keep the swap rather than pay the premium. This unusually high profit could have been avoided if we would have negotiated the swap terms initially. Those terms would have given the borrower the right to have an independent market valuation.
Medical Office Facility, Knoxville, TN