On June 30, the Alternate Reference Rate Committee (ARRC) that works under the auspices of the Federal Reserve Bank of New York published another document to assist capital markets participants in their transition away from use of LIBOR as a transactional interest rate.

The document is entitled “AARC Recommendations Regarding More Robust Fallback Language for New Originations of LIBOR Syndicated Loans.” These recommendations update a set of ARRC–recommended rate fallbacks for syndicated loans that was published in 2019. One key change is that ARRC is now suggesting that all syndicated loans should use the so-called “hardwired” approach for fallbacks because of the practical difficulty in using the alternate “amendment” approach.

The document is available here.