The first broadly syndicated loans (BSLs) priced over the secured overnight funding rate (SOFR) have approached the market, but whether the floodgates open to more loans priced over the Libor-replacement rate remains uncertain. Investors may not even see new collateralized loan obligations (CLO), fastcashloan.net/payday-loans-njlink which purchased 70% of leveraged loans last year, priced over a Libor-replacement rate until well into next year.
Regulators have set a year-end deadline to price all new floating-rate transactions over a Libor-replacement rate, and BSLs priced over SOFR have started to emerge, starting in September with Ford Motor Co.'s massive $15.5 billion refinancing of investment-grade debt.
More pertinent to CLO investors, Wayne Farms launched in September and has successfully syndicated a $750 million leveraged loan with a portion slated for institutional investors that is initially priced over Libor and flips to SOFR next year.
