News & Analysis as of

Libor Loan Syndication and Trading Association (LSTA)

Pillsbury Winthrop Shaw Pittman LLP

Prepare for Arrival: Aviation Finance Transitions to SOFR

Term SOFR emerges as the new market standard for aviation financing and leasing transactions. Market standards are evolving in new SOFR-based financings, including with respect to market disruption, breakage costs and...more

Cadwalader, Wickersham & Taft LLP

‘Covered Modifications’ and LSTA’s New SOFR Amendment Forms

On June 21, 2022, the Loan Syndications and Trading Association (“LSTA”) published its final form documents for loan parties amending credit agreements to replace London Interbank Offered Rate (“LIBOR”) with Term Secured...more

White & Case LLP

SOFR transition progresses despite volatile markets

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During 2021, after months of regulatory pressure to end reliance on the London Interbank Offered Rate (LIBOR), concerns were mounting that the US leveraged loan market was being too slow to adopt the Secured Overnight...more

Cadwalader, Wickersham & Taft LLP

London, Here We Come - June 2022 | Issue No. 181 - LSTA Publishes New Forms of Term SOFR Amendments

The LIBOR transition process continues to roll along. New transactions are (mostly) being closed without using LIBOR any more, and many legacy transactions are naturally transitioning when refinanced or renewed this year....more

Polsinelli

One Rate to Rule Them All: The End of LIBOR & the Future of “Cost of Carry”

Polsinelli on

Effective December 1, 2021, the Loan Syndication and Trading Association (LSTA) has issued a revised suite of loan trading documents modified to replace LIBOR (London Interbank Offered Rate) with SOFR (Secured Overnight...more

Alston & Bird

LSTA Trading Documents Revised to Simplify Cost of Carry Calculation

Alston & Bird on

Our Distressed Debt & Claims Trading Team examines how the Loan Syndications and Trading Association is updating its standard terms and conditions to prepare for the end of LIBOR....more

Cadwalader, Wickersham & Taft LLP

There’s No Limit - November 2021 | Issue No. 151 - Loan Market Round-Up

This was a busy week in the loan market. LIBOR transition is accelerating daily, we have a new form of credit agreement from the LSTA, and what has been deemed an “existential threat” to the syndicated loan market has reared...more

Sheppard Mullin Richter & Hampton LLP

LSTA Publishes Term SOFR Concept Document

On August 25, the LSTA published its Term SOFR Concept Document (the “Term SOFR Concept Document”)—the latest addition to its suite of SOFR-based Concept Documents. The Term SOFR Concept Document was prepared in response...more

Cadwalader, Wickersham & Taft LLP

Pack Your Backpack August 2021 | Issue No. 140 - SOFR: More Answers Make for More Questions

The market has received a lot of answers about benchmark replacement this year. We know for sure that LIBOR is going away. We also know that no new USD LIBOR loans should be originated after December 31st of this year....more

Womble Bond Dickinson

ARRC Formally Recommends Term SOFR and Related Loan Conventions in Major Step Towards LIBOR Cessation

Womble Bond Dickinson on

On July 29, 2021, the Alternative Reference Rates Committee (ARRC) of the Federal Reserve formally announced and recommended CME Group’s forward-looking Term Secured Overnight Financing Rate (Term SOFR) rates, marking the...more

Allen Matkins

LIBOR Meets SOFR

Allen Matkins on

In our first client alert about LIBOR’s passing, “LIBOR”s Long Good-Bye” (the First Alert), we suggested that borrowers of U.S. Dollars prepare themselves for the end of the London Interbank Offered-Rate (USD LIBOR), by...more

Snell & Wilmer

LIBOR: The End is Nigh (Really!)

Snell & Wilmer on

LIBOR—the London Inter-bank Offered Rate—has been a key interest rate benchmark in commercial lending since the 1980s. LIBOR is derived from the interest rates at which major banks would lend to each other on a short-term...more

McGuireWoods LLP

LSTA RFR Credit Agreements Are Here: LSTA publishes Daily SOFR (and Daily RFR) Concept Credit Agreements

McGuireWoods LLP on

On May 6, the LSTA published its long-awaited concept Daily SOFR and risk-free rate (RFR)-based multicurrency credit agreements (the Concept RFR Documents). The publication of these documents is a welcomed step in the...more

Troutman Pepper

LSTA Adds 'Credit-Sensitive Rate' Rider for LIBOR Fallback Language

Troutman Pepper on

In what may be the first step in a move away from the Secured Overnight Financing Rate (SOFR) as the replacement rate for LIBOR, the Loan Syndications & Trading Association (LSTA) issued a market advisory memo titled,...more

King & Spalding

And So it Begins: What Recent Announcements Mean for the Future of LIBOR

King & Spalding on

On March 5, 2021, the ICE Benchmark Administration (the “IBA”) issued feedback that it had completed the consultation with LIBOR panel banks that it began in December 2020, and stated that it will be unable to publish certain...more

Cadwalader, Wickersham & Taft LLP

FFA Next Gen Event: ‘Into the Unknown’: A Fund Finance Perspective on ‘Letting LIBOR Go’

The U.S. chapter of FFA Next Gen held its second virtual panel session this week, titled “Into the Unknown”: A Fund Finance Perspective on “Letting LIBOR Go.”...more

Proskauer Rose LLP

LIBOR Transition: Preparing for the End of LIBOR

Proskauer Rose LLP on

For the past several years, loan market participants have been well aware of the anticipated phase-out of the London Interbank Offered Rate (“LIBOR”) as a benchmark for floating rate instruments. Based on current regulatory...more

White & Case LLP

Regulators determined to keep SOFR transition on track

White & Case LLP on

The disruption to capital markets caused by the COVID-19 pandemic has not shifted the overall timeline of regulators and industry bodies for the replacement of US dollar LIBOR with SOFR by the end of 2021. With the expected...more

Proskauer Rose LLP

LIBOR Replacement Update

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As most market participants are aware, in 2017, the Financial Conduct Authority (FCA), a financial regulatory body in the UK, announced that LIBOR would be phased out. The announcement was made, in part, in recognition of the...more

White & Case LLP

Anglo-American relations: A special relationship with subtle differences

White & Case LLP on

Much has been written about the influence of US terms on European transactions and particularly the steady migration of US concepts into English law facilities agreements, resulting from the supply-demand imbalance in the...more

Sullivan & Worcester

LIBOR Transition - Recent Developments Affecting English Law Term Loan Facility Documentation

Sullivan & Worcester on

This article seeks to provide a brief summary of recent developments relating to the replacement of LIBOR, with a particular focus on English law term loan documentation, including the drafting produced by the Loan Market...more

Cole Schotz

Checking In With The LIBOR Phase-Out

Cole Schotz on

When we last blogged in January about what borrowers can do to prepare for a potential cessation of the London interbank offered rate (“LIBOR”), there was a lot of uncertainty surrounding whether LIBOR would actually be...more

Locke Lord LLP

ARRC Publishes Guiding Principles for LIBOR Fallback Language

Locke Lord LLP on

Introduction - The Board of Governors of the Federal Reserve System and the Federal Reserve Bank of New York convened the Alternative Reference Rates Committee (ARRC) in 2014 in order to, among other things, identify the...more

Foley & Lardner LLP

The Phasing Out of LIBOR: Initial Reaction and Preparation

Foley & Lardner LLP on

1. Background: Elimination of LIBOR by 2021 - As has been widely publicized, on July 27, 2017, the U.K. Financial Conduct Authority announced that LIBOR (London Interbank Offered Rate) the longtime global interest rate...more

Lowndes

The Phase-out of LIBOR and Implementation of Alternative Reference Rates

Lowndes on

We wanted to bring to your attention that Andrew Bailey of the U.K.'s Financial Conduct Authority (FCA) announced last Thursday that he wants LIBOR phased out by the end of 2021 (when the FCA will stop requiring LIBOR rate...more

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