Term SOFR Benchmark Replacement Provisions

Make sure you are up to date on the latest trends in the benchmark replacement or fallback provisions for the Term Secured Overnight Financing Rate (Term SOFR). Although benchmark replacement provisions are not as critical as when replacing LIBOR upon its cessation, such fallback provisions remain important and have transitioned to provide for replacing Term SOFR in the event it becomes unavailable. This practice note discusses current market trends in publicly filed credit agreements from January to November 2023.

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Related Content

• LIBOR Transition to SOFR in Credit Agreements
  Read this practice note describing the replacement of LIBOR as a baseline reference interest rate under credit agreements. It discusses the primary replacement of LIBOR, Term SOFR, and the advantages and disadvantages of this rate relative to LIBOR, along with the latest developments related to the transition.

• Credit Agreement Resource Kit
  Check out this resource kit providing an overview of drafting, reviewing, and negotiating a credit agreement, the principal document in a financing transaction.

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  Watch this video highlighting the transition of LIBOR clauses in credit agreements and its implication in the market.

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