Market Trends 2024: Term SOFR Benchmark Replacement Provisions

Summary

This practice note discusses 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 2024. Although benchmark replacement provisions are not as critical as when replacing LIBOR upon its cessation, such fallback provisions remain important and have transitioned to replacing primarily Term SOFR in the event it becomes unavailable.