May 12, 2021 Webinar
11:00am – 12:00pm EDT
Register here.

For US federal tax purposes, the main consideration for replacing an interbank offered rate (IBOR) with a fallback rate (or of adding a fallback mechanic to an existing instrument) is that this alteration could result in a deemed exchange of the instrument (with tax consequences for both the issuer of the instrument and the holder of the instrument).

Guidance for addressing the US federal tax consequences of an IBOR with a successor rate resides in three areas:

  • Older rules for addressing the US tax consequences for amendments to debt in general;
  • Treasury Regulations initially proposed in 2019; and
  • An IRS Revenue Procedure released in 2020.

Hosted by Intelligize, join Mayer Brown experts, Thomas Humphreys and Brennan Young, as they provide an overview of IBOR replacement under current federal tax guidance and a discussion of practical considerations in connection with various different types of instruments.