SONIA meaning

This checklist outlines the principal ISDA documentary points that should be considered during a financing transaction. Term sheet stage If acting for a borrower and specialist hedging advisers are engaged, obtain their input on the term sheet. If acting for a borrower, confirm the total pricing of the deal is clear (covering both the loan and the hedge). A borrower may pick a lender for a low loan margin, only to find that the swap credit spread from the same lender renders the overall economics less appealing than those from another lender. Are the loan and hedging set on an IBOR basis (eg EURIBOR) or on a risk free rate (eg SONIA or SOFR)? Does the lender require a zero floor in its loan? If acting for a borrower, ensure the borrower understands the consequences of any mismatch between this and the hedging documentation. ...

This Checklist This Checklist presents, in a tabular format, the matters to address when preparing a loan that references a compounded risk-free rate (RFR) such as the Sterling Overnight Interbank Average Rate (SONIA), calculated in arrears. It explains the purpose of the key provisions, highlights issues to weigh up, and offers drafting pointers and practical guidance for practitioners. For further analysis, see Practice Note: Interest provisions in risk-free rate based loan agreements. The Checklist draws on provisions contained in the Multicurrency Term and Revolving Facilities Agreement incorporating backward-looking compound rates and forward looking term rates (lookback without observation shift) issued by the LMA (the LMA Compounded RFR Facilities Agreement). The LMA’s recommended form documentation, with accompanying user guides and commentary, is accessible to LMA members on its website. While the Checklist is prepared on the basis of LMA-style documentation, the guidance will also be relevant to bilateral transactions and agreements using other loan forms. Practice Note: Interest provisions in risk-free rate based loan agreements provides a fuller discussion and...

In this issue: Copyright & associated rights Designs Patents General IP LexTalk®IP: a Lexis®Nexis community Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Copyright & associated rights Law360, London: On 2 June 2025, peers again backed an amendment to the Data (Use and Access) Bill (DUA Bill) that would oblige AI companies to be open about the copyright-protected works used to train their models, in the third round of parliamentary ping-pong on the topic. See: Peers push government again over AI copyright concerns. Designs Independent fashion designer loses design right battle against Boohoo.com (Edwards v Boohoo.com) In a classic David and Goliath clash in fast fashion, independent designer Sonia Edwards lost her claim in Edwards v Boohoo.com UK Ltd [2025] EWHC 805 (IPEC) against online fast fashion giant Boohoo.com and linked companies over alleged infringement of unregistered design rights in her garments. The...

In this issue: Key R&I law developments Corporate insolvency processes Directors and insolvency Insolvency litigation Financial institutions Employees and insolvency International restructuring and insolvency Key dates for restructuring and insolvency professionals Daily and weekly news alerts New content Key R&I law developments Insolvency Practitioners (Amendment and Transitional Provisions) Regulations (Northern Ireland) 2025, SR 2025/177: This instrument revises the Insolvency Practitioners Regulations (Northern Ireland) 2006 (SR 2006/33), creating an obligation to pay interest on losses resulting from, or enabled by, an insolvency practitioner’s fraud or dishonesty. The interest must be set above the Sterling Overnight Index Average (SONIA), among other changes. The provisions take effect on 9 December 2025. See: LNB News 17/11/2025 2. Insolvency Service publishes monthly insolvency statistics for October 2025 The Insolvency Service has issued October 2025 monthly insolvency data for England and Wales, covering company and individual cases. There were 2,029 company insolvencies—2% higher than September 2025...

Insurers underwriting trade credit and supply-chain covers have been narrowing policy wordings as they brace for claims amid the swings in global trading terms ushered in by the Trump administration. A projected surge in worldwide insolvencies could unsettle supplier credit arrangements. Additional exposures may arise from goods being stockpiled in warehouses, and disruption at ports could put pressure on supply-chain policy conditions. These dynamics could not only prompt litigation over whether policies respond to particular losses, but also fuel disputes between insurers where a policyholder’s covers potentially overlap. Sonia Campbell, a partner at law firm Covington & Burling LLP, noted that carriers are likely to scrutinise their heightened risk very carefully. In such a volatile market, she said, insurers will keep a firm focus on limiting that exposure. She also indicated that, if this continues, the market may harden, whether through the insertion of exclusions or by way of increased premiums...

Banks and other financial institutions raise income by levying interest on the loans they extend. For lending to produce a return, the rate charged must at a minimum offset the lender’s own costs. See Practice Note: Introductory guide to interest in loan agreements—Cost of lending. In most syndicated facilities, many interest and interest period terms align with those used in real estate finance. This Practice Note highlights the interest and interest period mechanics that are particular to real estate finance (REF) deals. Where to start with drafting interest and interest period provisions in a real estate finance transaction These provisions for any given deal are ordinarily settled at term sheet stage before the facility agreement is drafted. It is therefore essential to review the term sheet’s terms before preparing the facility agreement. LMA real estate finance documentation The LMA includes clauses to address interest and interest period points within its real estate finance documentation, including its: single currency term facility agreement for real...

ARCHIVED: This Practice Note has been archived and is not maintained In brief, a market disruption clause explains how loan interest is determined when a lender’s funding costs exceed the London Interbank Offered Rate (LIBOR) or another nominated benchmark—often arising when the financial system is under strain, causing markets to seize up, or when the particular lender faces solvency issues. Either scenario is liable to increase the lender’s cost of funds. These clauses are typically found in facility agreements where interest is set by reference to a floating rate such as LIBOR or the Euro Interbank Offered Rate (EURIBOR). This Practice Note considers market disruption provisions in the setting of LIBOR-based syndicated facilities. Similar considerations apply to syndicated facilities that calculate interest by reference to EURIBOR and other benchmark rates. The ongoing move away from LIBOR to risk‑free rates, including SONIA, will have an impact on the drafting of market disruption provisions. For further detail, see Practice Notes: LIBOR transition and Interest provisions in (LIBOR-based) Loan Market Association (LMA)...

This Practice Note examines the application of term risk‑free rates (RFRs) in loan agreements. It addresses: what term RFRs exist and when they are appropriate Term Secured Overnight Financing Rate (Term SOFR) and the Loan Market Association (LMA) Facilities Agreements EURIBOR and Term €STR key considerations when deploying Term Sterling Overnight Index Average (Term SONIA) For: guidance on using compounded RFRs in loan agreements, see Practice Note: Interest provisions in risk‑free rate based loan agreements background on interest in a facilities agreement and the types of rates available, see Practice Note: Introductory guide to interest in loan agreements our material in an easy‑to‑navigate interactive toolkit, see: toolkit an overview of the key issues in the LIBOR transition, see Practice Note: Introductory guide to LIBOR transition a list of developments for each LIBOR currency during the transition, see the: LIBOR developments tracker What term RFRs are available and when can they be...

Term sheet for an unsecured syndicated facility for an investment grade borrower incorporated as a limited liability company in England and Wales with or without guarantees In respect of a £[ • ] term loan facility for [ insert name of borrower ] Date [ • ] 20[ • ] This term sheet is illustrative only, outlining the matters expected in the final documentation. It serves as a guide to content. It does not constitute an offer to make the facility available. Provision of the facility is conditional on satisfactory due diligence, credit committee approval [ , the mandate letter ] and satisfactory final documentation...