{"id":368,"date":"2021-09-21T15:17:45","date_gmt":"2021-09-21T19:17:45","guid":{"rendered":"https:\/\/blogs.duanemorris.com\/bankinglaw\/?p=368"},"modified":"2021-09-21T15:17:45","modified_gmt":"2021-09-21T19:17:45","slug":"libor-transition-the-first-syndicated-sofr-loan-is-here","status":"publish","type":"post","link":"https:\/\/blogs.duanemorris.com\/bankinglaw\/2021\/09\/21\/libor-transition-the-first-syndicated-sofr-loan-is-here\/","title":{"rendered":"LIBOR Transition: The first syndicated SOFR loan is here!"},"content":{"rendered":"<p class=\"DMBdyTxt\" style=\"text-align: justify\">We knew it was coming, but it finally happened.<\/p>\n<p class=\"DMBdyTxt\" style=\"text-align: justify\">Ford Motor Co. announced in June their intention to refinance $15.4 billion in syndicated facilities \u2014 and at least some of them on SOFR. With all eyes on what would be the first syndicated U.S. corporate loan tied to regulators\u2019 preferred LIBOR replacement, Ford formally launched the deal this month. <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-09-09\/ford-s-sofr-loan-is-first-new-deal-to-use-libor-s-replacement\">Bloomberg<\/a> reported that there are three revolver tranches that Ford is refinancing (with\u00a0JPMorgan Chase &amp; Co. leading the loan process): a $3.35 billion three-year portion, a $2 billion three-year tranche and a $10.05 billion five-year portion. Ford\u2019s loan is using Simple SOFR, and not Term SOFR <a href=\"https:\/\/www.newyorkfed.org\/medialibrary\/Microsites\/arrc\/files\/2021\/ARRC_Press_Release_Term_SOFR.pdf\">endorsed<\/a> by the ARRC earlier this summer.<\/p>\n<p class=\"DMBdyTxt\" style=\"text-align: justify\">This first syndicated loan originated on SOFR has marked a milestone in the transition away from LIBOR. And as the transition gains steam, more SOFR loans are expected to come in the last quarter of the year.<\/p>\n<p>Duane Morris\u2019 LIBOR Transition Team:\u00a0\u00a0<a href=\"https:\/\/www.duanemorris.com\/attorneys\/rogerschari.html\">Roger S. Chari<\/a>, Chair,\u00a0<a href=\"https:\/\/www.duanemorris.com\/attorneys\/joelnephross.html\">Joel N. Ephross<\/a>,\u00a0<a href=\"https:\/\/www.duanemorris.com\/attorneys\/ameliaamyhhuskins.html\">Amelia (Amy) H. Huskins<\/a>, and\u00a0<a href=\"https:\/\/www.duanemorris.com\/attorneys\/michellengo.html\">Phuong (Michelle) Ngo<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We knew it was coming, but it finally happened. Ford Motor Co. announced in June their intention to refinance $15.4 billion in syndicated facilities \u2014 and at least some of them on SOFR. With all eyes on what would be the first syndicated U.S. corporate loan tied to regulators\u2019 preferred LIBOR replacement, Ford formally launched &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/blogs.duanemorris.com\/bankinglaw\/2021\/09\/21\/libor-transition-the-first-syndicated-sofr-loan-is-here\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;LIBOR Transition: The first syndicated SOFR loan is here!&#8221;<\/span><\/a><\/p>\n","protected":false},"author":481,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[253,240,238,259,248,405,247,250,409,410,252,227,228,243,236,245,241,256,257,206,266,411,237,376,260,271],"ppma_author":[348,346,360,353],"class_list":["post-368","post","type-post","status-publish","format-standard","hentry","category-general","tag-amelia-huskins","tag-amy-huskins","tag-arrc","tag-benchmark-replacement","tag-chari","tag-daily-simple-sofr","tag-duane-morris","tag-ephross","tag-ford","tag-ford-motor-co","tag-huskins","tag-joel-ephross","tag-libor","tag-libor-replacement","tag-libor-transition","tag-london-interbank-offered-rate","tag-michelle-ngo","tag-ngo","tag-phuong-ngo","tag-roger-chari","tag-secured-overnight-financing-rate","tag-simple-sofr","tag-sofr","tag-syndicated-loan","tag-term-sofr","tag-usd-libor"],"authors":[{"term_id":348,"user_id":481,"is_guest":0,"slug":"mngo","display_name":"Phuong (Michelle) Ngo","avatar_url":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-content\/uploads\/sites\/14\/2020\/08\/ngomichelle-125x150.jpg","0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""},{"term_id":346,"user_id":414,"is_guest":0,"slug":"rschari","display_name":"Roger S. Chari","avatar_url":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-content\/uploads\/sites\/14\/2020\/02\/chariroger-125x150.jpg","0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""},{"term_id":360,"user_id":478,"is_guest":0,"slug":"jne120","display_name":"Joel N. Ephross, P.C.","avatar_url":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-content\/uploads\/sites\/14\/2020\/07\/ephrossjoel-125x150.jpg","0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""},{"term_id":353,"user_id":479,"is_guest":0,"slug":"ahh175","display_name":"Amelia (Amy) H. Huskins","avatar_url":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-content\/uploads\/sites\/14\/2020\/08\/huskinsamy-125x150.jpg","0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/posts\/368","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/users\/481"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/comments?post=368"}],"version-history":[{"count":0,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/posts\/368\/revisions"}],"wp:attachment":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/media?parent=368"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/categories?post=368"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/tags?post=368"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/ppma_author?post=368"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}