Swaps, caps & collars
The right structure for your debt and your rate view.
Corporate borrowers
Your credit agreement requires you to swap part of a term loan, and the bank arranging the loan is usually the same desk pricing the swap. Evercrest sits on the other side: we take apart the bank's pricing, negotiate the credit charge and the ISDA, and handle the hedge accounting, on that required swap and on any hedge across your debt.
Overview
For most companies, the bank arranging the loan is also the desk quoting the swap, cap, or collar, and that overlap rarely works in your favor. Evercrest takes the pricing apart: we separate the Dodd-Frank mid from the dealer's credit charge, settle the charge before you execute, and reconcile the rate at closing against what was agreed. For caps and collars, we competitively bid the trade rather than accepting the first number.
We also handle what happens after the trade. We document the hedge for ASC 815 and 820, build and maintain effectiveness testing your auditors accept, and advise on existing positions, including terminations, blend-and-extends, and the hedge implications of a refinancing. And when you know debt is coming, for an acquisition or a refinancing, we can lock today's rate ahead of the close with a forward-starting swap or a swaption, so a move in rates between signing and funding doesn't reprice the deal. Whether you are a private company, a public company, or a private-equity-backed borrower managing acquisition debt, you get an independent, experienced check on every number the bank puts in front of you.
What we do
The right structure for your debt and your rate view.
Lock today's rate before the debt funds, with a forward swap or swaption.
Negotiate the credit charge, verify the Dodd-Frank mid.
Level the documentation with your bank or syndicate.
Designation, testing, and documentation.
Terminations, amendments, blend-and-extends, and refinancing hedges.
Fixed and floating mix and risk guidelines.
Common questions
Get a read before you commit.