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Voting With or Dragging Their Feet (Depending on Your Viewpoint): US Loan Markets Continue to Show Interest in Credit-Sensitive Alternatives to SOFR

By J. Paul Forrester, Mary Jo N. Miller & David K. Duffee on July 29, 2021
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Despite recent regulatory “encouragement” to adopt SOFR as “preferred” by the Alternative Reference Rates Committee (ARRC), we continue to observe credit agreements in the US loan markets that use a credit-sensitive alternative rate (CSR) to SOFR.

In fact, a recent check of public filings showed eight reported credit agreements that used a CSR, specifically the Bloomberg Short-Term Bank Yield Index (BSBY).

Read the full article (PDF).

Photo of J. Paul Forrester J. Paul Forrester

Paul Forrester is a respected corporate finance and securities lawyer whose practice is especially focused on structured credit, including collateralized loan obligations, energy (including oil and gas, utilities, shipping, refinery and pipeline) financings and project development, and financing (especially concerning renewable energy, industrial…

Paul Forrester is a respected corporate finance and securities lawyer whose practice is especially focused on structured credit, including collateralized loan obligations, energy (including oil and gas, utilities, shipping, refinery and pipeline) financings and project development, and financing (especially concerning renewable energy, industrial, petrochemical, power and transportation projects and infrastructure).

View full profile on MayerBrown.com.

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Photo of Mary Jo N. Miller Mary Jo N. Miller

Mary Jo N. Miller is Mayer Brown’s US Banking & Finance professional support lawyer, and a member of the firm’s Knowledge Management department. She uses her extensive experience as a banker and finance lawyer to help the practice stay abreast of cutting edge…

Mary Jo N. Miller is Mayer Brown’s US Banking & Finance professional support lawyer, and a member of the firm’s Knowledge Management department. She uses her extensive experience as a banker and finance lawyer to help the practice stay abreast of cutting edge financing issues and products, and deliver work product of the highest quality. Mary Jo’s practice also focuses on developing form documents and other practice resources, training lawyers, and assisting in the development and implementation of technology to allow the practice’s lawyers to leverage internal and external knowledge to build deeper client relationships and deliver excellent client service.

View profile on MayerBrown.com.

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  • Posted in:
    Banking, Finance and Securities
  • Blog:
    Eye on IBOR Transition
  • Organization:
    Mayer Brown

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