Swaps / Agrawal Tech

Can some one explain the setup of the problem 10 Agrawal Tech on Pg 144 of CFAI? Is it 1) AGT receives 10M from bond holders and pays 6.75% 2) AGT pays LIBOR to Swap Dealer 3) AGT receives (LIBOR+X = 6.75%) from Swap Dealer I cannot figure this out… Thanks