It's 5:00 PM on Monday, May 23, 2022. Do you know how interest is calculated on your loan?
As the remaining settings for interest and swap payments based on the London Interbank Offered Rate (LIBOR) cease in June 2023, and as markets continue to get comfortable with the Secured Overnight Financing Rate (SOFR) as a LIBOR replacement, uncertainty insofar as interest and hedge payments are concerned persists. In this episode, partners Jay Wardlaw, Daniel Evans, and Gordon Peery raise questions and make recommendations for determining whether caps and swaps may become unmoored from the loans which they were designed to hedge – and the steps and costs associated with amending CRE hedge documentation. "Springing caps" and other solutions are also presented in the current rising interest rate environment.
The Property Line is a brief and lively discussion of the biggest issues facing the commercial real estate industry. The podcast will deliver insights from Seyfarth's real estate lawyers and other industry leaders on current market trends and how they impact all facets of commercial real estate.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
