On 23 November 2020, the LMA published exposure drafts of two multicurrency facility term and revolving facilities agreements incorporating rate switch provisions (the "Rate Switch Agreements"). Both Rate Switch Agreements provide for a switch to compounded risk-free rates, however one agreement is based on lookback without observation shift and the other is based on lookback with observation shift.
This webinar, presented by Toby Mann and Katie Hoyle, Knowledge Directors at Clifford Chance, provides an introduction to the Rate Switch Agreements and, in particular, discusses:
- the context for, and the purpose of, the development of the Rate Switch Agreements
- an overview of the rate switch mechanics
- an overview of the framework for compounded rate loans
In addition to this webinar, viewers should also refer to the Commentary to the Rate Switch Agreements which is available on the LMA website.