Latest Developments With SOFR: Impact on New and Existing Financings
A live 90-minute premium CLE video webinar with interactive Q&A
This CLE webinar will explore the recent developments and market conditions involving the use of the Secured Overnight Financing Rate (SOFR) – the approved benchmark fallback. The panel will generally provide insights on the current state and challenges and trends related to the transition to SOFR.
Outline
- Overview: How the transition from LIBOR to SOFR went and where are we now?
- Regulatory background on LIBOR cessation
- Transition paths including LIBOR Act, synthetic LIBOR, contractual fallbacks, and amendment
- IRS regulations/guidance on tax consequences of transition
- BSBY cessation
- Documentation for LIBOR and BSBY transitions
- SOFR benchmark rate
- Term SOFR
- Daily Simple SOFR
- 30-Day/90-Day/180-Day Average SOFR
- New York Fed's recent modifications to its SOFR calculation methodology
- Risk management considerations when using SOFR
- Drafting and negotiating SOFR terms in loan agreements
- Hedging challenges
- Other trends and developments
- Creation of Reference Rate Use Committee (RRUC) following conclusion of Alternative Reference Rates Committee (ARRC)
- Market volatility and divergence between Term SOFR, Daily Simple SOFR, and Average SOFR
- Recent relevant UK case – Standard Chartered PLC v. Guaranty Nominees Limited and Ors [2024] EWHC 2605 (Comm)
- Practitioner takeaways
Benefits
The panel will review these and other key considerations:
- What are the key takeaways regarding the transition from LIBOR to SOFR?
- What are the current issues and challenges with SOFR?
- What are the hedging challenges and risk mitigation considerations in utilizing SOFR?
- What are some drafting and negotiating considerations with SOFR as the benchmark rate for most loan agreements?
Faculty
Les Jacobowitz
Partner
ArentFox Schiff
Mr. Jacobowitz has over 30 years of experience representing corporations (including not-for-profits), governmental... | Read More
Mr. Jacobowitz has over 30 years of experience representing corporations (including not-for-profits), governmental issuers, underwriters, and financial institutions in domestic and international transactions. He has provided counsel on deals involving $25 billion or more, as well as restructurings and workouts of an additional $50 billion. Mr. Jacobowitz has worked with governmental entities, private companies, banks, investment banks and funds in all aspects of financing, including the lending, securitization, real estate, public finance, not-for-profit, health care, restructuring, energy & environment and infrastructure & privatization financing areas, and related litigation. He is also a prolific speaker and author on the threat and impact of the LIBOR transition and has successfully worked with clients to negotiate fair terms regarding the LIBOR transition so as to ensure economic equivalence in the transition.
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Kathryn G. (Kate) Wellman
Member
Moore & Van Allen
Ms. Wellman’s investigations practice includes representation of financial institutions in inquiries involving... | Read More
Ms. Wellman’s investigations practice includes representation of financial institutions in inquiries involving the U.S. Department of Justice, the Office of the Comptroller of the Currency, the Federal Reserve, the U.K. Financial Conduct Authority, and financial regulators in other foreign countries. She has managed and coordinated internal reviews relating to systems and controls issues, including related to analysis of cross-border accounts for anti-money laundering and tax compliance issues. Her financial regulatory experience includes assisting clients with recovery and resolution planning, corporate governance matters, and other regulatory compliance issues. As part of that work, she manages the preparation of recovery and resolution planning governance playbooks for financial institution clients that guide actions and decision-making by the boards and senior management of their material entities, as well as responses to other regulatory inquiries and actions.
CloseEarly Discount (through 04/25/25)