Transitioning your loans to SOFR will be challenging enough. Transitioning your loans and hedges at the same time will not be without hiccups unless you plan strategically and with sufficient time ahead of LIBOR's demise after June 30, 2023. Furthermore, there is not only the operational risk with interest rate caps concentrated with a few dealers in the market but amending your caps to meet specific covenant requirements may be expensive.
In this session, you learn about:
Riverside's recommended approach to transitioning loans and hedges to SOFR
The pros and cons of the four different SOFR indices in the market
Nuances in your credit agreement and hedge requirements that may offer relief
Speaker: Joyce A. Frost, Partner, Riverside Risk Advisors LLC