Melio & Company advised Oregon Health & Science University on the restructuring of a $72 million floating-to-fixed rate swap.
In May 2016, Oregon Health & Science University restructured two swaps with a combined notional amount of $72,000,000. The financing partner for the transaction was Wells Fargo Securities.
Melio & Company ran a competitive request for proposal process, encompassing various banks. This allowed Oregon Health & Science University to reduce its fixed rate by 96 bps, better match the variable receipts on the related debt, and improve collateralization thresholds. By blending in the existing $14 million negative mark-to-market and extending to a longer-dated swap, Oregon Health & Science University avoided the need for a cash settlement, while still reducing the swap rate.