Beverly Enterprises, an operator of assisted-living centers and a provider of health-care services, is considering entering into an interest-rate swap with J.P. Morgan Chase on the back of issuing USD200 million of 9.625% eight-year senior notes. Schuyler Hollingsworth, senior v.p. and treasurer in Fort Smith, Ark., said the notional amount of the swap would likely be around USD100 million, and the maturity is expected to match that of the bond issue. In the transaction the company wants to receive floating to take advantage of the current low interest rate environment, he added. In addition, the swap would reduce the company's funding costs by 150 basis points.
Healthcare Co. Ponders Interest-Rate Swap
