Medical group uses unique financing strategy to develop new center

Birmingham, AL - January 17, 2011 - When CardioVascular Associates of Birmingham (CVA) recently announced the development of their new Birmingham center, they took advantage of a unique and not so well known service called swap negotiating. "Although the use of an interest rate swap is a very common practice in commercial real estate financing, many borrowers are unaware that their rate can be further negotiated down" according to Steve Pishko, Managing Director of Swap Negotiators. "We are able to typically save the borrower 20 to 25 additional basis points on an average commercial swap. That can translate into tens if not hundreds of thousands of dollars" adds Pishko.

An interest rate swap is when a borrower moves to fix their floating rate. The borrower is essentially buying a "futures" contract for their interest rate fix from the bank. "Unfortunately for the borrower, banks use sophisticated tools to monitor the market which allows them to add as many as 50 basis points to the rate without the borrower ever seeing it" says Pishko.

The financial reforms in 2010 were supposed to create greater transparency into the bank's use of derivatives like interest rate swaps but they did not. "As a result, banks earn a significant amount of revenue from these transactions at the borrower's expense unless the borrower uses an expert to represent them" added Steve.

In order to secure the best financing terms for the CVA, Swap Negotiators structured two Interest Rate Swap transactions which were used to fix the interest rate for the project. Their all-in interest rates for the equity loan were 3.74% for 5 years, and for the construction-permanent loan 4.19% for 10 years. "Engaging CMAC, our finance company and Swap Negotiators to handle the financing of our $21MM facility was one of the best business decisions we made for our project," said Dr. Chandler, President of CVA. "It was important to us to have someone address each question and simplify the complex nature of this type of transaction since we have 32 physicians in our group," Dr. Chandler further added.

The new center is scheduled to open sometime in 2012 in mid-year.


About Swap Negotiators - Swap Negotiators is a highly specialized group that provide expertise exclusively for commercial borrowers. Located in central Florida, Swap Negotiators provides advice on interest rate swap contracts for commercial borrowers and works in partnership with banks to provide transparent pricing, valuations and ongoing support for the life of a swap. Additional information about Swap Negotiators can be obtained by calling (877) 218- 8016 or by visiting

About CardioVascular Associates - CardioVascular Associates of Birmingham was founded by Dr. John B. Burrett in 1946. Centered in Birmingham, Alabama, CardioVascular Associates (CVA) has grown to 32 cardiologists who specialize in an array of diagnosis and treatment options. CVA has created a network of talent, skill and technology where patients aren't just cared for - they are cared about. CVA uses the latest technology to detect and diagnose heart disease. Unique diagnostic services include use of PET/CT for cardiac stress testing, and outpatient cardiac catheterization in the private setting of our own outpatient cath lab. Advanced nuclear and ultrasound imaging of the heart are also commonly used. CVA is recognized as one of the largest and most respected cardiovascular practices in the Southeast. For more information about CVA please visit or call (205) 599-3525.