Recommended LIBOR Replacement Language Released
Thursday, May 9, 2019
Posted by: Chip Deale
In the latest ACMA Community Blog post, ACMA Fellows Mark Winings and Steve Drapekin, with their Lewis Rice LLC colleague David Brown, summarize the recommended language released on April 25, 2019, by the Alternative Reference Rates Committee (ARRC) to include in contracts for syndicated loans and LIBOR floating rate bonds. They note that ARRC is encouraging market participants to begin using the new language in contracts.
Messrs. Winings, Drapekin and Brown write that, "Parties should begin to include "fallback language," which takes effect if LIBOR becomes unavailable, in their contracts for syndicated loans and LIBOR floating rate bonds." They note that ARRC plans to provide fallback language for bilateral (non-syndicated) business loans and securitizations soon, and that the International Swaps and Derivatives Association (ISDA) eventually will develop replacement language for derivative products.
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