Market Trends 2023: Term SOFR Benchmark Replacement Provisions

Summary

This practice note identifies market trends in the benchmark replacement or fallback provisions for the Term Secured Overnight Financing Rate (Term SOFR) included in select publicly filed credit agreements from January 2023 to November 2023. Although benchmark replacement provisions are not as critical as when replacing LIBOR upon its cessation, such fallback provisions remain important and have transitioned to provide for replacing Term SOFR in the event it becomes unavailable.