HCMP has assembled a team of experienced legal professionals to assist clients who will be affected by the London Interbank Offered Rate’s (LIBOR) expected cessation on December 31, 2021. Our lawyers draw upon their commercial lending experience to counsel clients on updating contracts impacted by the upcoming phase-out.
Our LIBOR Phase-Out Task Force helps clients:
- Understand why LIBOR is being replaced as a primary index rate and how this impacts financing and derivative transactions
- Plan for the replacement of LIBOR as the reference rate for existing contracts and loan documents
- Learn about SOFR—the proposed replacement index rate for USD-based contracts—and its benefits and shortcomings
- Determine steps to take as a lender when transitioning transaction documents to an alternative reference rate
- Identify steps to take as a borrower in connection with LIBOR replacement in financing documents
Additionally, HCMP’s LIBOR Phase-Out Task Force advises companies throughout the Northwest expecting to adhere to ISDA’s LIBOR replacement protocols.
LIBOR Phase-Out Resources
LIBOR Phase-Out Webinar
The presenters at this webinar regularly represent lenders and businesses in financing transactions and address the impacts of the phase-out of LIBOR as a primary index rate, the implementation of SOFR as a replacement index rate, and the hurdles associated with the modification of existing LIBOR-based financing transactions before December 31, 2021.
The Alternative Reference Rates Committee (ARRC) Email Alerts:
The ARRC issues regular updates, links to useful publications, and recommendations to assist lenders and businesses navigating this transition. Sign up here to receive email updates from the ARRC.
The ARRC’s website is an invaluable resource for lenders and borrowers.
Alternative Reference Rates Committee website: https://www.newyorkfed.org/arrc
ARRC General Resources:
ARRC Frequently Asked Questions (last updated October 15, 2020): https://www.newyorkfed.org/medialibrary/Microsites/arrc/files/ARRC-faq.pdf
ARRC Best Practices for Completing the Transition from LIBOR: https://www.newyorkfed.org/medialibrary/Microsites/arrc/files/2020/ARRC-Best-Practices.pdf
ARRC-Recommended Fallback Language for Loan Documents:
- 2020 Hardwired Fallback Language for Syndicated Loans - https://www.newyorkfed.org/medialibrary/Microsites/arrc/files/2020/Updated-Final-Recommended-Language-June-30-2020.pdf
- 2020 Hardwired Fallback Language for Bilateral Business Loans - https://www.newyorkfed.org/medialibrary/Microsites/arrc/files/2020/Updated-Final-Recommended-Bilateral-Business-Loans-Fallback-Language-August-27-2020.pdf
- 2019 Amendment Approach Fallback Language for Syndicated Loans - https://www.newyorkfed.org/medialibrary/Microsites/arrc/files/2019/Syndicated_Loan_Fallback_Language.pdf
- 2019 Amendment Approach Fallback Language for Bilateral Business Loans - https://www.newyorkfed.org/medialibrary/Microsites/arrc/files/2019/Bilateral_Business_Loans_Fallback.pdf
- ISDA Website: https://www.isda.org/
- ISDA 2020 IBOR Fallbacks Protocol (October 23, 2020) - http://assets.isda.org/media/3062e7b4/08268161-pdf/