February 27, 2023 - Today the LSTA republished its suite of credit agreement forms and concept documents. The updated documents reflect clarifications and conforming adjustments made in the ordinary course of reviewing LSTA forms and have been vetted by the Primary Market Committee. A list of the few changes made to the previously effective versions include:
- Adjustments to the fallback language to clarify trigger events if the benchmark is a daily rate. The proposed adjustments appear in the definition of “Available Tenor”, “Benchmark Transition Event” and “Benchmark Replacement Date”. The changes make it clear that there is no “Available Tenor” concept applicable for a daily rate for purposes of determining if a Benchmark Transition Event/Benchmark Replacement Date has occurred.
- The addition of the so-called Luhansk People’s Republic and the so-called Donetsk People’s Republic to the list of country and territorial sanctions in the Sanctions representation (Section 3.16(a))
- Adjustments to align these documents with the MCAPs published in May 2022
- A clarification in the optional hardwired fallback language in the forms of credit agreement to address potential double-counting of the spread adjustment when falling back to a daily rate from Term SOFR.
- The deletion of superfluous language in Section 2.18 of the Concept Documents.
- The conversion of the Multicurrency Term Loan and Revolver Concept Document and the Term SOFR Concept Document into LSTA forms. (At this time, we do not plan to further update the Concept Documents after this year. The three documents will remain available to members however for their reference.)
- Form of Credit Agreement – Term Loan and Revolver
- Form of Credit Agreement – Multicurrency Term Loan and Revolver (Term SOFR)
- Form of Credit Agreement – Term Loan
- Form of Credit Agreement – Revolver
- Daily Simple SOFR Concept Document
- Daily Compounded SOFR Concept Document
- Daily Simple RFR Multicurrency Concept Document