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Amstar Group Completes $200 Mil in Swaps

DENVER-The private national real estate investment and development company takes advantage of historically low interest rates to fix the rate on $200 million in debt at less than 5% for three years.

By John Rebchook | Updated on July 02, 2001

DENVER-Amstar Group Ltd., a private national real estate investment and development company headquartered here, recently completed three swap transactions on $200 million of its floating interest rate debt. The swaps occurred with the Denver office of the Bank of America, which is headquartered in Charleston, NC., and its Global Derivatives Group.

“We believe it was prudent to take advantage of this period of historically low interest rates,” says Bruce O’Neil, Amstar’s director of finance.

He says the swaps ”mitigated Amstar’s exposure to floating interest rates, which is one of the largest risks on the liability side of our balance sheet. In addition to satisfying our very healthy appetite for hedging, these swaps fix the LIBOR rate on this debt at less than 5% for three years.”

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