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Notice:
As of February 2024, this website is no longer being updated. ARRC documents remain critical to an enduring system of robust reference rates. As noted in the ARRC’s Closing Report, the New York Fed plans to launch a new sponsored group in 2024 to promote the integrity, efficiency, and resiliency in use of reference rates and to promote the ARRC’s critical best practice recommendations.

Business Loans

ARRC Loan Remediation Survey Results

October 13, 2022
The ARRC released a summary of the aggregated and anonymized results from the Loan Remediation Survey it had published seeking information on lenders' and borrowers' steps already under way and plans going forward to remediate USD LIBOR business loans prior to June 30, 2023. Most respondents indicated they have documented remediation plans in place and highlighted plans to actively transition their LIBOR loans to SOFR ahead of LIBOR cessation. Timing-wise, however, over half of lender respondents expected that the majority of their LIBOR loans would only have transitioned away from LIBOR by the end of Q2 2023 or later. The ARRC continues to encourage movement to new rates ahead of LIBOR cessation where feasible in order to mitigate potential operational challenges from attempting to transition a large number of contracts in a limited amount of time. The ARRC's LIBOR Legacy Playbook provides a number of best practice recommendations intended to facilitate a smooth transition.

Loan Remediation Survey

August 9, 2022
The ARRC released a survey seeking information from both lenders and borrowers on plans to remediate USD LIBOR loans ahead of June 30, 2023. The ARRC’s LIBOR Legacy Playbook has encouraged movement to new rates ahead of LIBOR cessation, where feasible, and emphasized the operational challenges involved in attempting to transition a large number of contracts after the LIBOR cessation date. The survey aims to inform the ARRC and market participants on LIBOR transition readiness and the need to address any potential operational issues involved.

The ARRC asks respondents to enter their responses into the survey spreadsheet, and to submit the spreadsheet by email to the ARRC Secretariat by September 7, 2022. Individual firm responses will be maintained as confidential, and the survey results will be aggregated and anonymized prior to being published in order to preserve that confidentiality.

Loan Conventions for Use of Forward-Looking SOFR Term Rate

July 21, 2021
The ARRC released conventions on the use of forward-looking term SOFR and SOFR Averages (to be applied in advance) for syndicated and bilateral business loans. In both cases, the interest rate is known in advance of the interest period, much like it is for LIBOR-based loans today, and thus, most the of loan conventions can be similar to LIBOR loan conventions.

ARRC Releases Supplemental Recommendation of Hardwired Fallback Language for Business Loans

March 25, 2021
The ARRC released supplemental versions of its recommendation of hardwired fallback language for USD LIBOR denominated syndicated and bilateral business loans. The supplemental recommendation for business loans sets out abridged versions of the 2020 fallback language for syndicated business loans and bilateral business loans incorporating the certainty on fallback timing and economics afforded by the March 5th announcements. These simplified versions of the ARRC's hardwired business loans fallback reflect the ARRC's continued efforts to support a seamless transition away from USD LIBOR and encourage the broad voluntary adoption of the ARRC's recommended alternative reference rate, SOFR.

Recommendation for SOFR-Based Intercompany Loans Issued by Nonfinancial Corporations

January 29, 2021
The ARRC released recommendations for intercompany loans based on SOFR. As outlined in the document, the ARRC recommends that new SOFR-based intercompany loans use the 30- or 90-day Average SOFR set in advance, with a monthly, quarterly, semi-annual, annual, or other reset period as is determined appropriate by the firm.

SOFR "In Arrears" Conventions for Syndicated Business Loans

July 22, 2020
The ARRC released conventions related to using SOFR in arrears, both daily simple SOFR and daily SOFR compounded in arrears, in syndicated loans. The conventions follow the ARRC's 2020 Objectives, which identified the publication of recommended conventions and supporting materials for syndicated loans as a priority milestone for the year, as well as the ARRC's revised Hardwired Fallbacks for Syndicated Loans, which were published on June 30, 2020. Later, the ARRC also released its technical appendices intended to support the conventions, along with example documents.

SOFR "In Arrears" Conventions for Use in Bilateral Business Loans

November 25, 2020
The ARRC released conventions for using SOFR in arrears, both daily simple SOFR and daily compounded SOFR in arrears, in bilateral business loans. The ARRC also released FAQs for Business Loans Hardwired Fallback Language, which may be updated from time to time to reflect developments. Later, the ARRC also released its technical appendices intended to support the conventions, along with example documents.

Bilateral Business Loans Fallback Language

August 27, 2020
The ARRC released updated recommended contractual fallback language for new originations of USD LIBOR denominated bilateral business loans. The updated bilateral business loan fallback language adjusts the “Hardwired Approach” and the “Hedged Loan Approach” of the recommended language that was initially released in May 2019. That language followed an associated consultation and webcast (comments received). The ARRC also released FAQs for Business Loans Hardwired Fallback Language, which may be updated from time to time to reflect developments.

Syndicated Loans Fallback Language

June 30, 2020
The ARRC released updated recommended contractual fallback language for USD LIBOR denominated syndicated loans. The hardwired fallback language was updated to recommend the use of simple daily SOFR in arrears in the second step of the waterfall and include a more permissive early opt-in trigger. The ARRC initially released recommended fallback language for syndicated loans in April 2019. That language followed an associated consultation and webcast (comments received).