ARRC Publishes Refreshed Recommended Fallback Language For Syndicated Business Loans For LIBOR Transition Planning

On June 30, 2020, the Alternative Reference Rates Committee (“ARRC”)¹ published recommendations regarding more robust fallback language for new originations of U.S. dollar-denominated syndicated business loans that reference LIBOR.²  The ARRC's recommendations contain refreshed hardwired fallback language (the “Updated Fallback Language”) and an updated user's guide regarding such hardwired language and potential drafting alternatives (the “Updated User's Guide”).  The Updated Fallback Language refreshes the hardwired fallback language that the ARRC previously recommended in April 2019 (the “2019 Fallback Language”), as contemplated by the recently published ARRC Recommended Best Practices for Completing the Transition from LIBOR (the “Recommended Best Practices”).³  This refresh is also in line with the ARRC Guiding Principles, which provide that “fallback language should be expected to evolve to more specific language that leaves less ambiguity as to how