Ford’s SOFR Loan Is First New Deal to Use Libor’s Replacement
- Decision could start a wave of corporate loans tied to SOFR
- New deals aren’t allowed to use Libor starting in 2022
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The transition away from Libor is hitting a milestone as Ford Motor Co. does the first syndicated U.S. corporate loan tied to regulators’ preferred replacement for the benchmark.
The car maker is refinancing three revolving credit facilities using the Secured Overnight Financing Rate, according to people with knowledge of the matter. The company is also embedding climate-change goals into the deals.