Skip to main content

Nixon Peabody LLP

  • People
  • Capabilities
  • Insights
  • About
Trending Topics
    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni
    Practices

    View All

    • Affordable Housing
    • Community Development Finance
    • Corporate & Finance
    • Cybersecurity & Privacy
    • Entertainment & Media
    • Environmental
    • Franchising & Distribution
    • Government Investigations & White Collar Defense
    • Healthcare
    • Intellectual Property
    • International Services
    • Labor, Employment, and Benefits
    • Litigation
    • Private Wealth & Advisory
    • Project Finance
    • Public Finance
    • Real Estate
    • Regulatory & Government Relations
    Industries

    View All

    • Aviation
    • Cannabis
    • Consumer
    • Energy
    • Financial Services
    • Healthcare
    • Higher Education
    • Infrastructure
    • Manufacturing
    • Nonprofit Organizations
    • Real Estate
    • Sports & Stadiums
    • Technology
    Value-Added Services

    View All

    • Alternative Fee Arrangements

      Developing innovative pricing structures and alternative fee agreement models that deliver additional value for our clients.

    • Continuing Education

      Advancing professional knowledge and offering credits for attorneys, staff and other professionals.

    • Crisis Advisory

      Helping clients respond correctly when a crisis occurs.

    • DEI Strategic Services

      Providing our clients with legal, strategic, and practical advice to make transformational changes in their organizations.

    • eDiscovery

      Leveraging law and technology to deliver sound solutions.

    • Environmental, Social, and Governance (ESG)

      We help clients create positive return on investments in people, products, and the planet.

    • Global Services

      Delivering seamless service through partnerships across the globe.

    • Innovation

      Leveraging leading-edge technology to guide change and create seamless, collaborative experiences for clients and attorneys.

    • IPED

      Industry-leading conferences focused on affordable housing, tax credits, and more.

    • Legal Project Management

      Providing actionable information to support strategic decision-making.

    • Legally Green

      Teaming with clients to advance sustainable projects, mitigate the effects of climate change, and protect our planet.

    • Nixon Peabody Trust Company

      Offering a range of investment management and fiduciary services.

    • NP Capital Connector

      Bringing together companies and investors for tomorrow’s new deals.

    • NP Second Opinion

      Offering fresh insights on cases that are delayed, over budget, or off-target from the desired resolution.

    • NP Trial

      Courtroom-ready lawyers who can resolve disputes early on clients’ terms or prevail at trial before a judge or jury.

    • Social Impact

      Creating positive impact in our communities through increasing equity, access, and opportunity.

    • Women in Dealmaking

      We provide strategic counsel on complex corporate transactions and unite dynamic women in the dealmaking arena.

    1. Home
    2. Insights
    3. Alerts
    4. Recent key announcements and publications concerning the upcoming LIBOR transition

      Alerts

    Alert / Corporate Trust Alert

    Recent key announcements and publications concerning the upcoming LIBOR transition

    Oct 29, 2020

    LinkedInX (Twitter)EmailCopy URL

    By Erik Schneider

    A selection of recent announcements and publications from the ARRC, LSTA and ISDA, and the introduction of a proposed New York State legislative fix for legacy LIBOR contracts.

    DOWNLOAD

    PDF: LIBOR transition

    Much has happened since our July 9, 2020, Corporate Trust Alert “Latest on the LIBOR Transition Front” [1] as the pace of market developments quickens in anticipation of the approaching December 31, 2021, LIBOR transition deadline. Below are some of the key announcements and publications since our last Alert that Corporate Trustees, Loan Agents, and Calculation Agents should be aware of:

    • ARRC Releases Conventions Related to Using SOFR in Arrears for Syndicated Loans (7/22/20), which provides recommended conventions for both Daily Simple SOFR and Daily Compounded SOFR in arrears for Syndicated Loans. [2]
    • ARRC Releases the SOFR Starter Kit (8/7/20) a set of factsheets regarding the transition from LIBOR to SOFR, related background information, and suggested next steps. [3]
    • ARRC publishes Transition Resource Guides for Adjustable Rate Mortgages and Private Student Loans (8/18/20) guides to support transition from LIBOR to alternative rates, including SOFR. [4]
    • ARRC releases a Technical Reference Document (8/27/20) to support previously released syndicated loans conventions. The reference document includes an in-depth discussion of different lookback and other calculation methodologies, including Daily Simple and Daily Compounded SOFR methodologies, with accompanying spreadsheets demonstrating sample calculations. [5]
    • ARRC releases Updated Hardwired Fallback for Bilateral Loans (8/27/20) updated recommended contract fallback language for new U.S. dollar bilateral business loans. [6]
    • ARRC releases RFP for Publication of Term SOFR (9/19/20), a request for proposals seeking administrator to publish forward-looking SOFR term rates. Additional information is included in FAQs for Vendors published on 10/7/20 and 10/14/20. [7]
    • LSTA publishes exposure draft of LIBOR Replacement Provisions for Amendment of CLO Indenture (10/2/20), which provides a template of substantive provisions to include in a Supplemental Indenture for CLO amendment to adopt ARRC fallback terms; publication of final form expected in November 2020. [8]
    • ISDA launches the IBOR Fallbacks Supplement and IBOR Fallbacks Protocol (10/23/20), which will facilitate inclusion of the new fallbacks in existing non-cleared IBOR derivatives transactions between counterparties that both adhere to the protocol. ISDA intends the supplement and the amendments made by the protocol to take effect on January 25, 2021. [9]
    • A proposed legislative fix for legacy LIBOR contracts[10] was introduced in the New York State Senate on October 28, 2020. If enacted, it would seek to formally transition New York’s markets to ARRC or Fed recommended rates for legacy LIBOR contracts. The bill is currently in committee and a floor vote is not expected until after the New York State Legislature reconvenes in January 2021. For more on this proposed legislation see our alert from the last Corporate Trust Roundup.

    1. See Nixon Peabody Corporate Trust Roundup, July 13, 2020. [Back to reference]
    2. See “SOFR “In Arrears” Conventions for Syndicated Business Loans,” (2020); and “ARRC Releases Conventions Related to Using SOFR in Arrears for Syndicated Loans,” (July 22, 2020). See also the LSTA’s statement “LIBOR: Conventions for Unconventional Thinking,” (July 22, 2020). [Back to reference]
    3. See “ARRC Releases the SOFR Starter Kit,” (August 7, 2020). [Back to reference]
    4. See “ARRC Publishes Transition Resource Guides for Adjustable Rate Mortgages and Private Student Loans,” (August 18, 2020). [Back to reference]
    5. See “ARRC Syndicated Loan Conventions Technical Appendices.” [Back to reference]
    6. See “ARRC Releases Updated Recommended Hardwired Fallback Language for Bilateral Business Loans,” (August 27, 2020). [Back to reference]
    7. See “RFP for Vendor to Publish Forward-Looking SOFR Term Rates.” [Back to reference]
    8. See “LIBOR: The “Old CLO” Fix,” (October 5, 2020). [Back to reference]
    9. See “Amendments to the 2006 ISDA Definitions to include new IBOR fallbacks;” “ISDA Board Statement on the IBOR Fallbacks Supplement and Protocol.” [Back to reference]
    10. See New York Senate Bill S9070 (October 28, 2020).
      [Back to reference]
    11. See our alert, “ARRC-proposed New York LIBOR Legislation: The Trustees’ perspective” (July 6, 2020).
      [Back to reference]

    Practices

    Corporate Trust

    Insights And Happenings

    • Alert

      Can an Indenture Trustee bring legal action to exercise remedies against fraudulent transfer before an Event of Default has occurred under the Indenture? This New York court says no!

      Oct 29, 2020
    The foregoing has been prepared for the general information of clients and friends of the firm. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel. If you have any questions or require any further information regarding these or other related matters, please contact your regular Nixon Peabody LLP representative. This material may be considered advertising under certain rules of professional conduct.

    Subscribe to stay informed of the latest legal news, alerts, and business trends.Subscribe

    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni
    • Cookie Preferences
    • Privacy Policy
    • Terms of Use
    • Accessibility Statement
    • Statement of Client Rights
    • Purchase Order Terms & Conditions
    • Nixon Peabody International LLC
    • PAL
    © 2025 Nixon Peabody. All rights reserved