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Interest payments between counterparties and the swap bank

Create a different arrangement of interest payments between the counterparties and the swap bank that yet leaves each counterparty along with an all-in cost 1/2 percent below each's best rate & the swap bank with a 1/4 percent inflow.
Company B could pay fixed-rate of 10.75 % to the swap bank that would pass through 10.50 percent to Bank A. Bank A could pay LIBOR that the swap bank would pass in its entirety through to Company B. Actually, generic plain vanilla interest rate swaps, such as this one, are quoted through swap banks against LIBOR flat. The swap bank would pay U.S. dollar LIBOR flat in return for attaining dollar payments at 10.75 percent or the bank would make dollar payments at 10.50 percent in return for attaining U.S. dollar LIBOR flat. Although, the bank is charging a fixed-rate spread of .50 % for the swap.

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