Phase-Out of LIBOR: Implementing Replacement Rates for Floating Rate Loans and Derivatives
Recording of a 90-minute premium CLE video 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.
- 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
The panel will review these and other critical issues:
- What is the timeline for LIBOR's phase-out?
- 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 or another index as a substitute rate?
- What should counsel look for in ISDA agreements to confirm a suitable alternative rate?
- What is SOFR and how does it compare to LIBOR?
- What other replacements indices are market participants considering, including BSBY, Ameribor, and Prime?
Cheryl L. Isaac
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
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