Add interest rate swap expense to Earnings?

I am working on doing a debt restructuring model for a company and want to know if I can add the Interest Rate Swap expense back ( as interest )to my earnings since it would be wiped out with the debt restructuring.

It would be adding 5,000,000 to my EBITDA

Anyone do this before? It makes my numbers that much more compelling to the new creditors.

Thanks in advance

5,786 WSO Academy Investment Banking Session Reviews: 4.82/5

Georgetown McDonough School of Business

Class of '29 Jul 2026 Cohort

5.00/5

Investment Banking Mock Interview

“Julius was an excellent mentor and made the mock interview feel both challenging and constructive. He asked realistic investment banking questions and did a great job explaining not only what I could improve, but why certain answers were stronger. His feedback was specific, actionable, and immediately useful, particularly around structuring my responses and communicating my thought process more clearly. I also appreciated how approachable and encouraging he was throughout the session. I came away with several concrete takeaways that I can apply to future interviews, and I would absolutely work with Julius again. ”

SDA Bocconi School of Management

Class of '25 Oct 2026 Cohort

4.70/5

Investment Banking Full Resume Review

“The mentoring sessions were extremely valuable and played an important role in improving both the quality and the overall presentation of my CV. The mentor took the time to go through every single aspect of the document in great detail, providing clear and practical feedback on the content, structure, wording, and overall positioning of my experiences. One of the most valuable aspects of the sessions was the mentor’s ability to understand the specific requirements and expectations of the Investment Banking industry. Rather than simply making general improvements, he carefully reviewed each section of my CV and helped me identify how to better present my academic background, professional experiences, skills, and achievements in a way that is relevant and attractive to Investment Banking recruiters. The mentor also completely restructured the CV, helping me move from an initial version to a polished final format specifically suited to Investment Banking applications. The final result was much more concise, professional, and impactful, while ensuring that the most relevant information was clearly highlighted. His attention to detail was particularly helpful in improving the wording and making each bullet point more focused on achievements and measurable impact. Another aspect I particularly appreciated was his responsiveness. He was extremely quick in answering my questions and providing feedback, which made the entire process very efficient. Whenever I had doubts or needed clarification, I received a prompt and detailed response, allowing me to continuously improve the CV without unnecessary delays. Overall, the mentoring sessions provided significant value and gave me a much clearer understanding of how to position my profile for Investment Banking opportunities. I am very satisfied with the final version of my CV and with the level of guidance and support provided throughout the process. I would highly recommend this mentoring experience to anyone looking to strengthen their CV and prepare it effectively for a career in Investment Banking.”

See All 10,807 WSO Academy Reviews

3 Comments

solb22

PT

13y

Interested as well. I think you would need to expense it back at market price, which would depend on the reference price so I don't know how you would mark to market so far out in the future.

Reply

Quote

Report

Other

Authored by: Certified Prop Trading Professional - TraderCertified Prop Trading Pro

oreos

HF

13y

you should keep in mind that the swap will crystallise, become pari with seniors and then you'll have to take out a new swap for the (probably smaller) new floating debt, but swap costs may be higher (but most likely not as most swaps these days are so out of the money because they locked in at 4%)..

Reply

Quote

Report

Other

"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper

solb22

PT

13y

Vero dignissimos repudiandae et earum alias odio praesentium quia. Perspiciatis eius est qui omnis.

Mollitia nostrum voluptas tenetur dolores dolor voluptas. Ducimus omnis necessitatibus veniam quam quaerat omnis. Commodi praesentium est ut veniam. Omnis occaecati aut quis quae reprehenderit quam. Voluptatem eveniet quis ut.

Modi quis at quos placeat est non. Corrupti dolorem nostrum libero amet. Et ut pariatur porro dolor dolores et eos.

Reply

Quote

Report

Other

Authored by: Certified Prop Trading Professional - TraderCertified Prop Trading Pro

+220	Just One More Year	17	11h
+179	Piper Sandler in talks to acquire PWP	75	6h
+124	UBS Appears to be Exploring Sale	19	3d
+90	Paradise Is Paradise	8	18h
+79	Drunk VP. How to manage?	27	1d
+38	How do I take my foot off the gas? (AN1)	4	1d
+38	Lazard US Views 2026/2027	13	1d
+32	M&A is Paradise	1	6d
+26	Why did EVR succeed vs GHL or PWP that ended up getting acquired?	9	1h
+22	Mandated 9:00am Arrival?	6	4d

1	redever	99.2
2	kanon	99.0
3	BankonBanking	99.0
4	Secyh62	99.0
5	DrApeman	98.9
6	GameTheory	98.9
7	CompBanker	98.9
8	dosk17	98.9
9	Betsy Massar	98.9
10	bolo up	98.8

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

Add interest rate swap expense to Earnings?

Score Breakdown

Feedback

Score Breakdown

Feedback

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

Add interest rate swap expense to Earnings?

See All Comments - 100% Free

Trending Content - Investment Banking Forum