February 15, 2022 - Today LSTA members received an updated version of the LSTA’s Simple RFR Multicurrency Concept Document. This document is an illustrative example of an RFR referenced credit agreement with interest computed on a simple, in arrears basis. This credit agreement is for a revolving loan facility (with optional drafting for a term loan facility) with borrowings denominated in Dollars as well as Euro, Japanese Yen, Sterling, and Swiss Franc. Alternatively, this document also provides an illustrative example of offering RFR-referenced loans for Dollars, Sterling and Swiss Francs, but EURIBOR-referenced loans for Euros and TIBOR-referenced loans for Yen. A blackline reflecting the changes made to the May 2021 version is available here.

LSTA’s SOFR Library

This document completes the suite of the LSTA’s SOFR Concept Documents, links to which can be found below. Going forward we expect to update our LIBOR-based forms with Term SOFR and will consider whether any further updates are needed for the Daily Simple SOFR / Simple RFR concept documents or whether they will remain available in their current form as reference points.

Click here for the LSTA’s Term SOFR Concept Document dated December 17, 2021

Click here for the LSTA’s Daily Simple SOFR/Daily Compounded SOFR (Compound the Balance) Concept Document dated December 17, 2021

Click here for the LSTA’s Daily Compounded SOFR (Compound the Rate) Concept Document dated December 17, 2021

Click here for the LSTA’s Term SOFR and Daily Simple RFR Multicurrency Concept Document dated December 17, 2021

Click here for the LSTA’s Simple RFR Multicurrency Concept Document dated February 15, 2022

Current Project

We expect remediation to be the focus of 2022. To that end, we are working with our SOFR Amendments Working Group on forms of amendment for different scenarios and expect to first release Term SOFR versions and then Daily Simple SOFR versions. Once each set of forms has been vetted by the Primary Market Committee, they will be shared with LSTA membership as exposure drafts before they are finalized. We aim to finalize all of the forms in the spring.

For more information, please contact Tess Virmani.

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