One of the main concerns of a leveraged company is the cost of its debt.
Companies often borrow considerable amounts of debt at floating interest rates. If not hedged such an exposure to changing interest rates can lead to increased costs and cause debt covenant breaches.
We take no financial interest in the advice we give; this means that clients receive impartial and independent support.
Related Case Studies
Interest Rate Hedging - US Hedge Extension
A client had obtained medium-term, floating rate financing for an acquisition...
Interest Rate Hedging - Retailer
A French based buyout only had one bank and EUR 20m of debt. Despite a lack...
Deal Contingent Hedging - Media
Two European PE sponsors were contemplating the FX risk associated with their...