b'TABLE OF CONTENTSOTHER TOPICS OF NOTEAfter the March 5, 2021, announcement by the IBA,announcement, financial institutions began to offer there was an increased focus on amending existingTerm SOFR loan products in the latter half of 2021. contracts and entering into new contracts that useMost financial institutions are offering loan alternative benchmark reference rates instead ofproducts based on SOFR and Term SOFR, but LIBOR with most financial institutions requiring thatsome financial institutions are also offering loan any loan agreement entered into toward the end ofproducts using credit sensitive rates such as 2021 and thereafter use an alternative benchmarkAmeribor and the Bloomberg Short-Term Bank replacement rate rather than LIBOR. TheYield (BSBY) Index.recommended benchmark rate from the USThe transition away from LIBOR will continue in Alternative Reference Rates Committee (ARRC) is2022, and market standards will continue to evolve the Secured Overnight Financing Rate (SOFR),with respect to loan mechanic conventions for and the majority of financial institutions haveSOFR-based loans and credit-sensitive implemented SOFR as their preferred benchmarkbenchmarks. Insurance companies will want to rate. The markets desire for a forward-lookingconsider how those changes affect their term rate led to the recommendation by the ARRCinvestments and watch for any legacy LIBOR-based on July 29, 2021, of the Term SOFR rate publishedagreements to be converted to alternative by the CME Group for loans, related derivativesreference rates before June 30, 2023.and certain securitizations. Following that MAYER BROWN |177'