Execution

Step 1: Documentation

Ponder & Co. takes a different approach from the standard documentation. Because the "industry standard" documents are not always in the best interest of a healthcare provider, we have developed our own accepted "Ponder standard" documents.

Our goal: Shorten document negotiating time for our clients – and improve the results.

• Draft and review the master ISDA, credit support annex, and swap confirmation

Step 2: Transaction Execution

During the documentation process, an organization will choose the best way to execute the swap - a competitive bid involving several swap providers or negotiated pricing using a single swap provider. Ponder & Co. can manage either approach and has no vested interest in which approach a client chooses. Our objective is to educate the client as to the pros and cons of each approach and to always protect our client's interests.

A. Competitive Transaction

• Identify potential swap counterparties
• Develop bid form
• Seek bids from interested parties
• Evaluate results and select best bid

B. Negotiated Transaction

Ponder & Co. follows a two-step process:

1. Internal pricing: determine the price of the swap using the Ponder & Co. proprietary model and live LIBOR market prices
2. Shadow pricing: determine the prices at which dealers are willing to execute, using these steps:
   • Develop bid form
   • Discuss shadow pricing process with dealers
   • Seek several interested dealers
   • Receive rate indications
   • Price swap internally
   • Advise client on current market conditions
   • Negotiate the best interest rates

For more information contact Julian Head at 615-613-0212 or .