LSTA’s Weekly LIBOR Q&A Call every Monday at 3PM (ET).
Your search: libor
A short one this week: one article on the borrower’s arguments for “hardwired” LIBOR fallbacks, and another article on the latest in what the LSTA is doing in the ESG space. Oh–and a friendly reminder to treat MLK Day as a holiday for delayed comp purposes.
According to recent research by Fitch, borrowers should have a compelling appetite for “hardwired” LIBOR fallbacks. The downside risk of the amendment fallback – ending up in Prime – may be more likely than borrowers appreciate and the cash flow and ratings implications could be material. We discuss all below.
This week, we recap 2019 in both the primary and the secondary markets. We also announce the LSTA’s Form of Investment Grade Term Sheet. And what’s a week without LIBOR? We provide a SOFR timeline and remind members that we’ve recommenced our weekly LIBOR calls.
As of January 7, 2020, there are 724 days until the potential end of LIBOR. Will the syndicated loan market be ready?
This week, we revel in the sighting of a big SOFR loan (well, sort of). We turn to the markets to discuss the secondary in winter. We eye Washington and the OCC as they flag risks (LIBOR and potentially leveraged lending). We remind our members that Christmas and New Year’s are Loan Market Holidays (but note […]
The regulators are coming. In summer 2019, the SEC flagged the risks around LIBOR cessation and provided guidance around managing risk for the entities it regulated. Last week, the Comptroller of the Currency (OCC) did the same for the banks it regulates.
As discussed nearby, while the OCC’s Semiannual Risk Assessment flagged LIBOR cessation as an emergent risk, its tone was balanced on credit risk. First, the OCC noted that “[c]redit quality remains strong, as measured by traditional performance metrics”.
Tess Virmani, Associate General Counsel & Executive Vice President, Public Policy, will join the panel discussion “LIBOR Transition – Are You Ready?” at Paul Hastings’s LIBOR Transition 2020 Symposium in New York City.
SOFR syndicated loan origination is up and running! Sort of. On Friday, Shell announced a $10 billion SOFR (and sustainability)-linked financing. The $10 billion unsecured loan , led by Bank of America and Barclays, is split into a five-year $8 billion revolver and a one-year $2 billion facility.
Become a Member
Membership in the LSTA offers numerous benefits and opportunities. Chief among them is the opportunity to participate in the decision making process that ultimately establishes loan market standards, develops market practices, and influences the market’s direction.