Assisted a Registered Provider client with the restructure of a structured LOBO loan facility (a long-dated loan facility with a series of derivatives embedded into the underlying fixed rate loan).
These loans typically have a significant negative mark-to-market and are deemed by many as no longer fit for purpose given the current low interest rate environment.
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Put together a proposal for the restructure of the instrument and reviewed the financial counterparty’s pricing, rates and the termination costs.
Negotiated with both the lending and capital markets/treasury divisions of the bank to ensure that the facility could be restructured within acceptable cost parameters – both up-front and ongoing.
Negotiated and structured counter proposals to present to the bank, including how the termination costs should be met and managed.
Presented at board meetings to ensure a full understanding of the restructure and to demonstrate the cost/benefit analysis of their decision.
Managed the execution process and agreed all the supporting documentation for the revised hedging instrument.
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