LIBOR transition: the first SOFR syndicated loan has arrived! – Finance and banking


United States: LIBOR transition: the first SOFR syndicated loan has arrived!

To print this article, simply register or connect to

Ford Motor Co. in June announced plans to refinance $ 15.4 billion in syndicated facilities – and at least some of it on SOFR. With all eyes on what would be the first syndicated U.S. corporate loan tied to regulators’ preferred replacement of LIBOR, Ford officially launched the deal this month. Bloomberg indicated that there are three tranches of guns that Ford is refinancing (with JPMorgan Chase & Co. leading the lending process): one tranche of $ 3.35 billion over three years, one tranche of $ 2 billion over three years and a tranche of $ 10.05 billion over five years. Ford loan uses simple SOFR, not forward SOFR approved by the ARRC in early summer.

This first syndicated loan originated on SOFR marked an important step in the transition away from LIBOR. And as the transition accelerates, more SOFR loans are expected in the last quarter of the year.

Duane Morris LIBOR Transition Team: Roger S. Chari, President, Joel N. Ephross, Amelia (Amy) H. Huskins and Phuong (Michelle) Ngo.

Disclaimer: This alert has been prepared and posted for informational purposes only and is not offered, nor should it be construed as legal advice. For more information, please consult the full warning.

POPULAR ARTICLES ON: United States Finance and Banking

The 2020 Anti-Money Laundering Law

Morrison & Foerster LLP

The purpose of this article is to educate stakeholders about the Anti-Money Laundering Act of 2020 (AMLA), to explain its impact on the US anti-money laundering (AML) regime and to put highlight critical updates for financial institutions.

CFPB publishes small business loan rule proposal

Mayer brown

Today, the Bureau finally released its long-awaited draft regulations on data collection on small business loans. Section 1071 of the Dodd-Frank Act required the CFPB to collect data …

Are revenue sharing agreements loans? CFPB says yes

Sheppard Mullin Richter & Hampton

Last month, we wrote a blog about a consent order made by the California Department of Financial Protection and Innovation (DFPI) with a manager of revenue sharing agreements.

FINRA advises investors on SPAC warrants

Cadwalader, Wickersham & Taft LLP

FINRA has provided advice to investors considering investing in Special Purpose Acquisition Companies (“SPACs”), which typically consist of a purchase of “units” comprised of shares and warrants.

IBOR Transition Digest

Mayer brown

Welcome to the latest issue of Mayer Brown’s IBOR Transition Digest, a periodic collection of global regulatory and market developments and information on the complex issues facing financial market participants.

Leave A Reply

Your email address will not be published.