Law firm Stephenson Harwood LLP has advised NIBC Bank N.V. in relation to a secured loan facility. The loan, which incorporated the Secured Overnight Financing Rate (SOFR) Day-1 mechanism, was made available to a joint venture which is managed by the Dutch drybulk owner Van Weelde Shipping Group.

"This deal was significant, as it addressed the topical question of the discontinuation of LIBOR. The parties decided to incorporate SOFR Day-1 provisions in the facility, using and adapting the latest Loan Market Association language for SOFR Day-1, compounded in arrears with a lookback period of five days without an observation shift," said Dora Mace-Kokota, partner, Stephenson Harwood. "To our knowledge, this is the first ship finance English law set of facility documents, since LIBOR discontinuation was announced, which incorporates SOFR Day-1 provisions as opposed to using replacement of screen rate language or a rate switch mechanism."

The Stephenson Harwood team was led by ship finance partner Dora Mace-Kokota, who was assisted by senior associate Jennifer Ashford and associate Hannah Marriott.

The Stephenson Harwood ship finance team is internationally recognised for the strength and depth of its expertise. The award-winning team is known particularly for its commerciality and ability to solve even the most complex challenges with innovative financing structures. Clients include nearly all of the major international banks which are active in the shipping market, as well as those in the private equity space.