10.12.21
The use of SOFR in structured product transactions continues to gain momentum as two U.S. leveraged loans have priced using regulators’ preferred replacement benchmark for LIBOR. The two new loans are structured similarly to last week’s October 5 deal which was a $600 million seven-year loan and made history as the first to use SOFR in a U.S. leveraged loan. Overall, the asset class has been slow to transition away from LIBOR, however, many market observers agree these latest deals signal early support for the new benchmark rate.