Franklin Credit Announces Hedge Pacts

Franklin Credit Management Corp., a Jersey City, N.J.-based company engaged in the servicing and resolution of residential mortgage loans, has announced that it has entered into interest rate swap agreements to hedge part of its interest-rate-sensitive borrowings against increases in short-term interest rates. The $725 million of nonamortizing fixed-rate swap agreements are for periods ranging from one to four years. Under the agreements, Franklin Credit will make interest payments to its lead lending bank at fixed rates and will receive interest payments from the bank on the same notional amounts at variable rates based on the London interbank offered rate, the company said. The specialty finance company can be found online at http://www.franklincredit.com.