Interest Rate Swap Strategy Analysis

ABC Corporation, facing possible interest rate volatility, is currently evaluating its debt management strategies. The company has a $10 million floating rate loan indexed to LIBOR + 50 basis points and believes that interest rates will rise significantly over the next year. Thus, it contemplates entering into an interest rate swap to convert its floating rate exposure to fixed rates.

ABC Corporation approaches a bank, which offers to enter into a 5-year interest rate swap where ABC will pay a fixed rate of 3.5% and receive a floating rate of LIBOR + 30 basis points. Assessing the swap agreement, the CFO is considering its implications for the company's interest rate risk management.

What is the most appropriate characterization of the swap strategy that ABC Corporation is implementing?