The Alternative Reference Rates Committee ("ARRC") extended the comment period deadline for two consultations on U.S. dollar LIBOR fallback contract language for floating rate notes and syndicated business loans. The comment deadline, which was previously set to expire on November 8, 2018, will be extended until November 26, 2018.
As previously covered, the two consultations provide draft language for new contracts that reference LIBOR in order to ensure that these contracts will continue to be effective if LIBOR is no longer available. The consultation on fallbacks for floating rate notes proposed specific trigger events and a "waterfall" for determining the replacement rate and spread adjustment that would become effective in various scenarios. The consultation on fallbacks for syndicated business loans proposed two approaches: (i) a hardwired approach (which is similar to the floating rate note approach) and (ii) a much simpler amendment approach, which includes a streamlined amendment mechanism that could serve as the first step toward a hardwired approach.
In addition, the ARRC highlighted several webinars on the draft consultations that had been presented recently by ARRC members.
Cadwalader, Wickersham & Taft LLP represented the ARRC in the development of the consultations.
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