ARRC Supplements Its Recommended Libor Fallback Language for Business Loans

As part of its ongoing effort to support the transition away from the London Interbank Offered Rate, the Alternative Reference Rates Committee today supplemented its recommended hardwired fallback language for syndicated and bilateral business loans that reference U.S. dollar Libor.

Based on recent announcements about Libor’s scheduled cessation in 2023, the supplemental recommendation provides “simplified versions of the more elaborate fallback language offered in the 2020 recommendations,” the ARRC said. “Market participants may now use either the original 2020 or simplified 2021 language as they see fit and can be confident in the fact both versions lead to the same outcome at transition.”