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LIBOR and SOFR Transition for Tax-Exempt Transactions

July 27, 2021 1:00 pm - 2:00 pm CDT | Minneapolis, MN


As of July 26, 2021, derivatives, absent other agreements, are priced assuming that the variable rate is the SOFR Index. Tax rules related to the LIBOR transition may or may not result in a need to reanalyze the tax-exemption of a tax-exempt loan when such transition occurs. The mechanics of the transition and the events that trigger the transition are relevant to such analysis. Documentation is important.

David Cholst, Partner at Chapman and Cutler LLP, and Sam Gruer, Managing Director at Blue Rose Capital Advisors, provided an overview of the current and anticipated market developments for LIBOR and SOFR-based loans and swaps, and the federal tax-exempt bond law concerns related to transitioning from LIBOR to SOFR, from LIBOR to a benchmark other than SOFR, from Daily Simple SOFR to Term SOFR, and from SOFR to another benchmark.


Media Contact:

Megan Roth, Marketing Generalist



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