October 31, 2018 - Today the LSTA has published an audio podcast which addresses the concept of a “Shift Date” under LSTA trading documents.
Given recent queries by members, we believe there is still confusion about the LSTA’s role in determining a shift date. As explained in the podcast, the LSTA follows the process set out in the LSTA’s Shift Date Rules and reviews historical data to determine whether market convention shifted from trading a loan on par documents to distressed documents, and, if it so determines that a shift has occurred, to select and publish the Shift Date. To submit a Shift Date Request, members should send a request that includes the name of the Borrower, the title and date of the Credit Agreement, the deal CUSIP (or facility CUSIP, if appropriate), and name of the administrative agent under the Credit Agreement to LSTAShiftDates@lsta.org. The Shift Date published by the LSTA is binding on the parties.
Importantly, members should kindly note that the LSTA is not authorized under the documentation to advise the market when to make the shift from par documents to distressed documents.
Members also have the option to download the audio file linked to above.