LIBOR Transition

Hunton Andrews Kurth has closely studied the substantive and operational implications of the LIBOR transition for financial institutions and borrowers and is daily advising clients on LIBOR and SOFR transition issues. Our multi-disciplinary team is available to assist clients navigating this crucial transition. Our attorneys draw on years of mass amendment project experience and the firm’s sophisticated technical tools to maximize efficiency. Our financial services litigation team is primed if disputes concerning LIBOR transition issues arise.  Some of our representative LIBOR and SOFR transition experience includes:

  • Regularly representing lenders and borrowers on implementing LIBOR transition provisions in loan documents, including those based on language recommended by the Alternative Reference Rates Committee
  • Regularly representing clients in LIBOR-based derivatives and structured finance transactions
  • Advising financial services companies on transition from LIBOR
  • Advising issuers and underwriters in capital markets offerings of LIBOR-based and SOFR-based transactions
  • Reviewing contractual provisions and disclosures providing for the use of LIBOR in government insured mortgage notes and securities and addressing issues around replacing the index
  • Advising Ginnie Mae on revising and supplementing disclosures in offering documents and operative documents to address the elimination of LIBOR and the issuance of SOFR-based securities
  • Developing and negotiating SOFR-based securitizations for numerous clients
  • Assisting clients in following the ISDA benchmark fallbacks consultations on potential successor LIBOR rates and calculation methodologies, including the related results, as well as the FRB pronouncements on calculating SOFR based rates
  • Advising clients on the ISDA protocol and supplemental definitions
  • Advising public companies on disclosure related to LIBOR transition risk
  • Advising a trustee regarding trust agreement amendments related to billions of LIBOR-based mortgage-backed securities

Select representative mass amendment matters include:

  • Recognized as a 2018 ACC Value Champion by the Association of Corporate Counsel for a project involving analysis of over 15,000 agreements
  • Represented multiple financial institutions in modifying mortgage loan servicing agreements to permit a wider range of loss mitigation activities
  • Performed multiple mass contract documentation projects requiring the review of mortgage loan servicing agreements for purposes of due diligence, M&A-related transfers and restructurings involving assignments to related parties
  • Represented a large bank in the divestiture of its corporate trust business, which involved reviewing documents for thousands of fiduciary relationship undertakings, creating forms for assignments to the acquiring bank, engaging with the principals and obtaining the necessary transfer consent
  • Reconstructed the title records to hundreds of leasehold interests with below-market rents in multiple states and local counties so the tenants could augment their reorganization plan financing by over $200 million
  • Reviewed chains of title to thousands of mortgage notes and related mortgages for purposes of completing blank indorsements and blank assignments of mortgage

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