Nixon Peabody LLP

  • People
  • Capabilities
  • Insights
  • About

Trending Topics

    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni

    Practices

    View All

    • Affordable Housing
    • Community Development Finance
    • Corporate & Finance
    • Cybersecurity & Privacy
    • Environmental
    • Franchising & Distribution
    • Government Investigations & White Collar Defense
    • Healthcare
    • Intellectual Property
    • International Services
    • Labor & Employment
    • Litigation
    • Private Wealth & Advisory
    • Project Finance
    • Public Finance
    • Real Estate
    • Regulatory & Government Relations

    Industries

    View All

    • Cannabis
    • Consumer
    • Energy
    • Entertainment
    • Financial Services
    • Healthcare
    • Higher Education
    • Infrastructure
    • Manufacturing
    • Non Profit
    • Real Estate
    • Technology

    Value-Added Services

    View All

    • Alternative Fee Arrangements

      Developing innovative pricing structures and alternative fee agreement models that deliver additional value for our clients.

    • Continuing Education

      Advancing professional knowledge and offering credits for attorneys, staff and other professionals.

    • Crisis Advisory

      Helping clients respond correctly when a crisis occurs.

    • DEI Strategic Services

      Providing our clients with legal, strategic, and practical advice to make transformational changes in their organizations.

    • eDiscovery

      Leveraging law and technology to deliver sound solutions.

    • Global Services

      Delivering seamless service through partnerships across the globe.

    • Innovation

      Leveraging leading-edge technology to guide change and create seamless, collaborative experiences for clients and attorneys.

    • IPED

      Industry-leading conferences focused on affordable housing, tax credits, and more.

    • Legal Project Management

      Providing actionable information to support strategic decision-making.

    • Legally Green

      Teaming with clients to advance sustainable projects, mitigate the effects of climate change, and protect our planet.

    • Nixon Peabody Trust Company

      Offering a range of investment management and fiduciary services.

    • NP Capital Connector

      Bringing together companies and investors for tomorrow’s new deals.

    • NP Second Opinion

      Offering fresh insights on cases that are delayed, over budget, or off-target from the desired resolution.

    • NP Trial

      Courtroom-ready lawyers who can resolve disputes early on clients’ terms or prevail at trial before a judge or jury.

    • Social Impact

      Creating positive impact in our communities through increasing equity, access, and opportunity.

    1. Home
    2. Capabilities
    3. Practices
    4. Public Finance
    5. DerivativesPublic Finance

    Derivatives

    In the evolving public finance market, we help clients maximize opportunities and hedge their risks through the use of derivative transactions.

    Overview

    Nixon Peabody provides sophisticated guidance on a broad range of derivatives, including interest rate, basis, commodity and currency swaps, as well as caps and options. Positioned at the forefront of this public finance tool, we use derivatives with new financings, and with restructuring and refunding existing financings.

    Our team drafts and negotiates the legal documentation for these products and develops guidelines to help lenders review how they are used. We advise about Dodd-Frank compliance, including drafting internal policies and procedures, completing ISDA Protocol documentation, and bilateral contracts with swap counterparties.

    Derivatives raise many federal tax issues, and these tax aspects are critical in achieving the intended financial benefits. We advise our clients about the following:

    • The treatment of derivatives as qualified hedges for arbitrage yield purposes
    • Loans or investments associated with lump sum payments
    • The effect of derivatives on the treatment of payments on a debt as tax-exempt interest
    • Reissuance and change in yield concerns that may arise from the termination of a derivative
    • The impact of a subsequent securitization of tax-exempt bonds

    Representative Experience

    • State Serve as swaps/derivatives counsel in assisting with negotiating ISDA Master Agreements, amendments to swap documentation, and novation of swap transactions, as well as with Dodd-Frank Act compliance.
    • State Transportation Agency Serve as swap counsel in assisting with negotiation of ISDA Master Agreements, related documentation and confirmations involving interest rate and commodity swaps, forward starting swaps, basis swaps, swaptions, and termination agreements. We have also represented this municipal issuer and affiliates with respect to amending and terminating swap transactions and with Dodd-Frank Act compliance.
    • State Municipal Power Agency Serve as swap counsel by assisting in the negotiation of ISDA Master Agreements, related documentation and confirmations involving interest rate, and commodity swaps. We have represented this municipal issuer with respect to the negotiation of multiple swap transaction amendments, terminations, and novations relating to the restructuring of bond issues or to the credit deterioration of the swap counterparty. We have also assisted this municipal issuer with Dodd-Frank Act compliance.
    • Corporate Entity and Affiliates Serve as swap counsel in negotiating Credit Support Annexes, ISDA Master Agreements, and amendments to ISDA Master Agreements, as well as with Dodd-Frank Act compliance.
    • Higher Education Institution/Nonprofit Entity Served as swap counsel in the negotiation of an ISDA Master Agreement, Credit Support Annex, and Confirmation for an interest rate swap transaction, as well as for the amendment and early termination of such a swap transaction.
    • Municipal Water District Represented in the negotiation of an ISDA Master Agreement and related documentation and the novation of several interest rate swap transactions.

    Our Team

    See Full Team
    • Barry M. Rothchild

      Counsel
      • New York
      • Office:212.940.3187
      • brothchild@nixonpeabody.com
      Barry M. Rothchild
    • Kenneth C. Lind

      Partner
      • New York
      • Office:212.940.3005
      • klind@nixonpeabody.com
      Kenneth C. Lind
    • Daniel M. Deaton

      Partner
      • Los Angeles
      • Office:213.629.6050
      • ddeaton@nixonpeabody.com
      Daniel M. Deaton
    See full team

    Insights And Happenings

    • Alert

      What should the municipal securities market learn from the SEC’s recent proposed corporate cybersecurity rules?

      April 11, 2022

    Subscribe to stay informed of the latest legal news, alerts, and business trends.Subscribe

    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni
    • © 2023 Nixon Peabody. All rights reserved
    • Privacy Policy
    • Terms of Use
    • Statement of Client Rights
    • Supplier Diversity Program
    • Nixon Peabody International LLC
    • PAL