News and Analysis
Lenders push back on CSA-free SOFR amendments
- David Bell
- +Emily Fasold
•3 min read
Companies are irking investors by proposing to switch their Libor-linked leveraged loan coupons to SOFR without offering compensation to account for the lower yield of the replacement benchmark.
In recent weeks, at least two borrowers — security company Allied Universal and retailer PetCo — have proposed SOFR amendments without any credit spread adjustment. Investors pushed back hard in both cases, sources told 9fin.