Phase-Out of LIBOR: Implementing ARRC Reference Rates for Floating Rate Transactions and Derivatives, ISDA Revisions
Recording of a 90-minute premium CLE webinar with Q&A
This CLE webinar will discuss the scheduled phase-out of LIBOR (London Interbank Offered Rate) at the end of 2021. The panel will address alternative rates and provisions recommended by the Alternative Reference Rate Committee (ARRC) of the Federal Reserve Bank of New York and the steps that lenders and finance counsel should take to amend existing transaction documents and manage new transactions. The panel will also discuss the impact on swaps and other derivatives and evaluate alternative rate language in ISDA documents.
Outline
- LIBOR: reasons and timeline for phase-out
- Impact on commercial lending: floating rate transactions
- Effect on derivatives
- Alternative rates
- Recommended provisions contemplating a change in reference rate under loan agreements
- Amendment approach
- Hardwired approach
- Determining whether to amend financial contracts
Benefits
The panel will review these and other critical issues:
- What is the timeline for LIBOR's phase-out?
- What kinds of financing transactions will be impacted by the phase-out of LIBOR?
- What are the issues with alternative rate language currently contained in loan documents?
- How should floating rate forms be revised to address the phase-out and the use of SOFR as a substitute rate?
- What should counsel look for in ISDA agreements to confirm a suitable alternative rate?
Faculty
William J. Breslin
Partner
Fried Frank Harris Shriver & Jacobson
Mr. Breslin is a member of the Firm's Asset Management Group. His practice concentrates on derivatives, futures and... | Read More
Mr. Breslin is a member of the Firm's Asset Management Group. His practice concentrates on derivatives, futures and commodities. Mr. Breslin advises a wide range of clients, including hedge fund managers, private equity managers, commodity pool operators, commodity trading advisors, futures commission merchants, commercial end-users, and other businesses on regulatory and transactional issues related to derivatives, commodities and securities law matters. He also assists clients on their compliance with the Dodd-Frank Act, the applicable requirements of the Commodity Futures Trading Commission, the U.S. Securities and Exchange Commission, the National Futures Association and the rules and regulations of various clearinghouses and exchanges. Mr. Breslin also specializes in negotiating and documenting over-the-counter and exchange traded and cleared derivatives.
Close
Cheryl L. Isaac
Senior Counsel
Michael Best & Friedrich
Ms. Isaac represents financial institutions, energy companies, and commodity trading firms (including both end-users... | Read More
Ms. Isaac represents financial institutions, energy companies, and commodity trading firms (including both end-users and swap dealers) on a variety of derivatives transactions, and drafts documentation for interest rate swaps, foreign exchange, commodities, and other derivatives product lines. She assists clients on compliance with Title VII of the Dodd-Frank Act and all related regulations. She has extensive experience advising clients on a range of derivatives and banking-related regulatory issues such as cross-border trading, federal deposit insurance, capital and margin requirements, and swap dealer registration.
Close
Robert M. McLaughlin
Partner
Fried Frank Harris Shriver & Jacobson
Mr. McLaughlin is head of the firm's Derivatives Practice and a leading practitioner in derivative transactions of... | Read More
Mr. McLaughlin is head of the firm's Derivatives Practice and a leading practitioner in derivative transactions of all types, including futures, over-the-counter derivatives and cleared swaps, as well as related collateral, guarantee, custody and other credit support arrangements. He also maintains a leading practice in repurchase, securities lending and prime brokerage and other types of trading agreements, as well as structured products, synthetic equity and fund-linked investments, credit extensions, loan trading and derivatives claim trading. Mr. McLaughlin’s clients include hedge funds, private equity funds, investment management firms, investment and commercial banks, mutual funds, individual investors, corporations and government-sponsored entities. He regularly advises market participants on legislative and regulatory developments concerning futures, derivatives, cleared swaps, bankruptcy and insolvency safe harbors, and market structure and facilities.
Close