Libor Credit Agreement
Another alternative (and optimistic), the concept-SOFR agreement offers a language for the transition to a future-oriented SOFR term in case an accepted rate and methodology appear. When such a lifespan develops, the concept-SOFR agreement provides flexibility for the transition to this rate by modifying the administrative agent and the borrower, like many current agreements providing for a possible change in the inclusion of SOFR in certain triggers, which indicate that LIBOR will cease. As a reminder, the Daily Compounded SOFR and the Daily Simple SOFR are not fixed in advance like the LIBOR, but are calculated daily a posteriori during the interest rate period; In contrast, Term SOFR would operate in the same way as the current libor structure and would be easier for lenders to structure. .