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