The city of Detroit reached an agreement on Tuesday with two banks to end a costly interest-rate swap agreement, a significant step as the city negotiates with creditors to put together a plan to exit the largest municipal bankruptcy in U.S. history. Detroit will pay $165 million, plus up to $4.2 million in costs, to end the interest-rate swap agreements with UBS AG (UBSN.VX) and Bank of America Corp's (BAC) Merrill Lynch Capital Services at a 43 percent discount. As part of the arrangement, Detroit will also take out a $285 million loan from Barclays PLC (BARC.L) to pay to end the swaps. Terms of the agreement were announced by Robert Hertzberg, of the law firm Pepper Hamilton, which represents Detroit, before U.S. District Judge Gerald Rosen, the chief mediator in the bankruptcy case.
via Business News - Yahoo Finance http://finance.yahoo.com/news/detroit-reaches-deal-end-interest-190821383.html
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