Phase-Out of LIBOR: Revising Floating Rate Loans to Implement Alternative Reference Rates, ISDA Revisions

Recording of a 90-minute premium CLE webinar with Q&A

Conducted on Wednesday, May 8, 2019

Recorded event now available

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Program Materials

This CLE webinar will discuss ramifications of the scheduled phase-out of LIBOR (London Interbank Offered Rate) at the end of 2021 and outline steps real estate and commercial finance counsel must take now to review and consider amendments to existing floating rate loan documents. The panel will discuss alternatives to LIBOR and best practices for incorporating alternative rate language into form documents.


On July 27, 2017, the UK's Financial Conduct Authority announced that it would stop requiring reference banks to quote LIBOR by the end of 2021. LIBOR is used in calculating floating or adjustable rates on trillions of dollars in loans, bonds, derivatives and other financial contracts. Real estate and commercial finance counsel must contemplate the phase-out when drafting loan documents and reviewing existing loan documents.

The proposed U.S. replacement for U.S. dollar LIBOR is the Secured Overnight Financing Rate (SOFR), a broad-based Treasury repo financing rate recommended by the Alternative Reference Rate Committee (ARRC) of the Federal Reserve Bank of New York, published on a daily basis since April 2018. Questions remain, however, regarding industry acceptance and how best to transition from LIBOR to SOFR in existing and proposed transactions.

In September 2018, ARRC released proposed fallback language which provides valuable guidance for parties in negotiations over either a new credit agreement or an amendment to an existing credit agreement. They suggest two basic approaches to LIBOR fallback language, an "amendment approach" and a "hardwired approach." The hardwired approach specifically references variations on SOFR, while the amendment approach refers to the then-existing market convention should LIBOR ceased to be published.

Listen as our authoritative panel discusses the impact of the phase-out of LIBOR on floating rate loans and examines options for approaching the uncertainty surrounding the coming change. The panel will also discuss how ISDA is addressing the phaseout.



  1. LIBOR--reasons and timeline for phase-out
  2. Impact on floating rate transactions--determining whether loan documents should be amended
  3. Impact on securitized loans
  4. Alternative rates--SOFR, other
  5. Recommended provisions contemplating a change in reference rate under loan agreements
    1. Amendment approach
    2. Hardwired approach
  6. Impact on derivatives--ISDA adjustment provisions


The panel will review these and other key issues:

  • What is the timeline, and what kinds of transactions will be impacted by the phase-out of LIBOR?
  • What are the issues with alternative rate language currently contained in floating rate loan documents?
  • How should floating rate forms be revised to address the phase-out given the current uncertainty as to the substitute rate?
  • What should counsel look for in ISDA agreements to confirm a suitable alternative rate is provided?


Goodman, Gary
Gary A. Goodman


Mr. Goodman has extensive experience with financing transactions, specifically in the area of real estate finance,...  |  Read More

Kudenholdt, Stephen
Stephen S. Kudenholdt


Mr. Kudenholdt is Dentons' Head of Structured Finance and a member of the US Capital Markets practice. He is...  |  Read More

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