Library Deals Done
University of South Alabama$141,245,000
DerivativesJanuary, 2008
Deal Team:
Johan Grahs, Jim White
The University of South Alabama retained Porter,White & Company as its swap adviser in connection with a synthetic advance refunding of two of its outstanding bond issues. The University received a proposal from a major swap dealer to transact a synthetic advance refunding using LIBOR based swaptions.
Porter, White & Company analyzed and evaluated the proposal according to the University’s swap policy, previously drafted by Porter White,and assisted the University in negotiating the underlying ISDA documentation. The analysis identified, quantified and explained the risks of the transaction.
At the time of execution, Porter, White & Company provided full pricing transparency and verified the negotiated spread. The University was able to achieve present value savings of approximately 6.6% of the amount refunded and the savings were paid in cash upon execution of the swaptions.
