Successfully managing existing hedging positions

Legacy hedge positions frequently represent a large proportion of an asset’s value as well as a substantial cost or value among incumbent hedge counterparties, competing creditors and the borrower.

Interests between creditor groups versus other parties diverge greatly. Even hedging banks take different approaches. That’s why hedging is a first-order consideration in most refinancings and restructurings.

Until now, the techniques and experience that determine the true economic value of such existing positions have never been available to the infrastructure community. As a result, the value of unbiased, credible advice is particularly high for legacy hedge positions as well as when each party’s objectives vary widely from the others.

How Chatham assists with existing hedging positions

The value of credible, unbiased advice is particularly high for situations in which legacy hedging positions are involved. Chatham advises clients from the initial stages of a refinancing through management of the subsequent portfolio, including:

  • The implications of legacy hedging for refinancing options
  • Strategy, structure, and implementation of the hedge restructure plan
  • Negotiation with incumbent hedge counterparties
  • Evaluation of legacy documentation
  • Ongoing hedge requirements
  • Leading the hedging transaction process

Chatham can negotiate on your behalf or remain “behind the scenes” to assist with other aspects of the transaction, such as a new project.

To learn more about how Chatham optimizes refinancing and restructuring transactions, please contact us today.