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Swaps in Commercial Finance: Special Concerns With Modifications and Syndications, LIBOR Transition

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

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Conducted on Thursday, September 22, 2022

Recorded event now available

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This CLE webinar will examine issues that can arise when loans that are hedged with interest rate swaps are modified, extended, or prepaid. The panel will discuss the complexities of entering and modifying swaps in syndicated credit facilities. The panel will also review what steps, if any, lenders must take with swap instruments tied to loans that have converted from LIBOR to SOFR or other index rates.


Modifications to loan payment terms including interest-only periods, payment deferrals, and loan maturity or amortization extensions, can benefit both the borrower and lender. But such modifications may necessitate an amendment of associated swap arrangements. For modified loans with an associated interest rate swap, lenders should consider what, if any, action should be taken with respect to the swap and how it should be addressed in the loan modification.

Swap issues are compounded in a syndicated credit facility. The credit agreement may interfere with the swap provider's ability to administer, close out, and enforce its swaps, or the loan documents may conflict with or override certain provisions in the ISDA Master Agreement and swap confirmations. Swap provider(s) must coordinate with the syndicated lender group in adjusting the swap to fit the modified loan.

The cessation of LIBOR may require modification of existing loans to substitute SOFR or another alternative base rate for LIBOR. This also may affect the terms of a corresponding swap.

Listen as our authoritative panel discusses the issues to consider when coordinating swaps with loan modifications and syndications.



  1. Swaps and other derivatives: application in commercial loan transactions
  2. Loan modifications that may affect swaps
  3. Modifying swaps to conform to new loan terms
  4. Swaps in loan syndications
  5. Impact of LIBOR transition on loans terms and swaps


The panel will review these and other issues:

  • How are swaps used to hedge against interest rate risk at initial loan origination?
  • When should the lender modify swap terms to reflect changes in loan payment terms?
  • What issues need to be addressed when modifying swap instruments in connection with syndicated loans?
  • How has the termination of LIBOR affected LIBOR-based loans and corresponding swaps?


Buonanno, Joseph
Joseph B. Buonanno

Hunton Andrews Kurth

Mr. Buonanno heads the firm's derivatives group and is a member of its opinion committee and its Uniform Commercial...  |  Read More

Pugaczewski, Christian
Christian Pugaczewski

Hunton Andrews Kurth

Mr. Pugaczewski’s practice focuses on the development and structuring of financial products and the documentation...  |  Read More

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