Tick-tock. No, not the controversial social networking platform. That\u2019s the sound of time slipping away on the existence of LIBOR. Regulated bank lenders are at varying stages in their transition to a new interest rate, with some even testing the waters originating new loans bearing interest based on SOFR. \u00a0Non-bank lenders and asset managers are no less subject to the phase out of LIBOR, but for many the transition process is not quite so far along.<\/p>\n
For those who missed it, our new partner,\u00a0Anastasia Kaup<\/a>, wrote an informative\u00a0Alert<\/a> outlining some of the developments in LIBOR transition over the summer and some of the developments yet to come. \u00a0Since the summer, at least\u00a0one syndicated loan<\/a>\u00a0has reportedly been originated using the ARRC recommended hardwired approach. However, it remains to be seen whether the rest of the market will follow or stick with the amendment approach and simply go straight to SOFR amendments. It\u2019s still a bit early for SOFR amendments, but the LSTA is working on a sample for the syndicated loan market based on a form that Duane Morris developed. \u00a0Our Alert<\/a>\u00a0highlights some of the LIBOR transition issues for non-bank lenders and asset managers to consider as we march towards the end of the year.<\/p>\n Duane Morris\u2019 LIBOR Transition Team:\u00a0\u00a0Roger S. Chari<\/a>, Chair,\u00a0Joel N. Ephross<\/a>,\u00a0Amelia (Amy) H. Huskins<\/a>,\u00a0Phuong (Michelle) Ngo<\/a>, and\u00a0Han Wang<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" Tick-tock. No, not the controversial social networking platform. That\u2019s the sound of time slipping away on the existence of LIBOR. Regulated bank lenders are at varying stages in their transition to a new interest rate, with some even testing the waters originating new loans bearing interest based on SOFR. \u00a0Non-bank lenders and asset managers are … <\/p>\n