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ARRC Releases Consultations on Fallback Contract Language for Bilateral Business Loans and Securitizations for Public Feedback

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The Alternative Reference Rates Committee (“ARRC“) released consultations on U.S. dollar (“USD“) LIBOR fallback contract language for bilateral business loans and securitizations for public feedback. These consultations outline draft language for new contracts that reference LIBOR so as to ensure these contracts will continue to be effective in the event that LIBOR is no longer usable.

The ARRC is seeking feedback on each proposed approach and on the key issues involved. Comments should be sent to the ARRC Secretariat (arrc@ny.frb.org) no later than February 5, 2019.

Questions regarding the consultations should also be sent to the ARRC Secretariat (arrc@ny.frb.org) and will not be posted for attribution.

LIBOR Transition Update

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The Alternative Reference Rates Committee (“ARRC“) released additional information regarding its support of the transition from U.S. dollar (“USD“) LIBOR. The ARRC provided a timeline of key milestones. In addition, the ARRC has also released a set of Frequently Asked Questions (“FAQs“) regarding the previously released consultation on USD LIBOR fallback contract language for floating rate notes (“FRNs“). The FRN consultation primarily focuses on new transactions, and, at this time, the ARRC does not intend to produce consultations specifically related to amending outstanding FRNs or other cash products.

The consultation on FRNs and the similar consultation for U.S. syndicated loans are open for public feedback through November 8. (FRN Consultation; U.S. Syndicated Loans Consultation). Comments should be sent to the ARRC Secretariat (arrc@ny.frb.org) no later than November 8. Comments will be posted on ARRC’s website.