On 23 November 2020, the LMA published various documents with the aim of assisting market participants looking to include active LIBOR transition mechanisms in their loan documentation. These documents are a mix of new and revised versions of existing drafts, comprising:
- a revised version of the exposure draft multicurrency term and revolving facilities agreement incorporating rate switch provisions (lookback without observation shift);
- a new exposure draft multicurrency term and revolving facilities agreement incorporating rate switch provisions (lookback with observation shift);
- a revised commentary document relating to both rate switch facilities agreements referred to above;
- a new term sheet for use in conjunction with the two exposure draft rate switch facilities agreements; and
- new supplemental wording intended as an option for parties using the LMA’s Revised Replacement of Screen Rate wording published in August 2020, which includes a placeholder for pre-agreed terms in a process of renegotiation. This supplementary wording is designed as a starting point for parties looking to populate this placeholder by specifying pre-agreed terms in relation to the RFR.