IBOR transition: Impact on security and guarantees
Global | Publication | December 2021
The transition from LIBOR to risk-free rates affects everyone in the syndicated loan market and requires existing loan documentation to be amended. The impact of these LIBOR-related changes on the underlying security and guarantees – which were granted to secure the obligations under the existing loan documentation – will need to be assessed on a transaction by transaction basis.
This cross border guide provides answers to the question whether or not security or guarantees, given in support of the debt obligations under those finance documents which are amended to transition away from LIBOR referenced interest rates, extend to secure and/or guarantee the debt obligations as amended without further action, and is setting out the considerations to be made to ensure the continuing validity of security or guarantees where the underlying finance documents are amended.
Recognition
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