Veritas DGC, a gatherer of seismic data, has entered an interest rate swap to convert around USD80 million of a recent USD195 million floating-rate note sale into a fixed-rate liability. Matthew Fitzgerald, cfo in Houston, said the firm only hedged part of the total issue into a fixed-rate, paying 1.85% and receiving LIBOR, in order to maintain its fixed-to-floating debt mix. The swap has a two-year maturity, compared with the four-year issue of the note, in case Veritas seeks to buy back the debt early and refinance the issue, he said. Deutsche Bank was the lead manager and Wells Fargo Bank executed the swap, said Fitzgerald. Veritas sought quotes from both firms and settled with Wells Fargo, with whom it has a long-term relationship, after getting slightly better bids, according to Fitzgerald.
Data Gatherer Plots I-Rate Hedge
