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Shell Signs First SOFR Syndicated Loan as Libor Demise Nears

Dec. 13, 2019, 10:41 AM

Royal Dutch Shell Plc signed a $10 billion revolving credit facility tied to the Secured Overnight Financing Rate, the first syndicated loan to use the Federal Reserve’s replacement for Libor.

The facility will initially track Libor before switching to SOFR as early as one year after the signing date, according to a statement. The deal, which also has sustainability-linked pricing, comprises an $8 billion five-year tranche and a $2 billion one-year tranche, both with two one-year extension options.

See also: Wanted: Libor Replacement for Europe’s $1.1 Trillion Loan Market

The agreement, signed with 25 banks, is landmark for loan...

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