Transitioning from LIBOR—Some Key Considerations
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Key Takeaways:
- Borrowers should focus on whether their LIBOR-related contracts include adequate fallback language including whether it affords them consent rights over early opt-in.
- Borrowers should keep in mind the possibility of divergence in the successor rate for cash products and related interest rate swaps when entering into long-dated swaps.
- For public companies, adequate disclosure around risks and mitigation efforts that spans reporting periods is key.