Author(s):
Joyce M. Bernasek, Lisa Mantello, Jasmyn Lee
Jun 2, 2022
Although the benchmark Canadian Dollar Offered Rate (CDOR) will not be replaced by the Canadian Overnight Rep Rate Average (CORRA) until June 2024, the time to begin amending the language of credit agreements and other debt instruments is now. Taking action and being proactive about this transition was emphasized throughout Osler’s CDOR Cessation and Credit Agreements – What You Need to Know webinar, hosted by Joyce Bernasek, partner, Financial Services; Lisa Mantello, partner, Banking and Financial Services; and Jasmyn Lee, associate.
The webinar hosts noted that many credit agreements over the past year have been amended in anticipation of the new benchmark announcement which came on May 16 of this year. Both lenders and borrowers want to ensure that agreements that extend beyond June 2024 are not left with CDOR references, nor with a benchmark rate that no longer exists.
Fallback language is being developed by the Canadian Alternative Reference Rate (CARR) working group, of which both Lisa and Jasmyn are members of the CARR Loan Fallback Language working group. Osler will host a follow up webinar once the fallback language is finalized and released.
View the full webinar