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Switzerland: Approaching the endgame: LIBOR transition in the Swiss syndicated loan market

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In brief

As readers of JIBFL will be well aware, it is expected that LIBOR will no longer be available after the end of 2021, with the exception of certain tenors for USD LIBOR that will be published until the end of June 2023 and, potentially, a synthetic LIBOR for certain currency-tenor settings. While EUR LIBOR will cease to be available, there are no current plans to discontinue EURIBOR. With the Swiss franc (CHF) being one of the five LIBOR currencies and CHF LIBOR being used as reference rate for the calculation of interest in virtually every CHF denominated syndicated credit facility agreement, LIBOR transition poses an immense challenge to the Swiss syndicated loan market. Although we have seen the first pathfinder transactions using risk free rates,1 the Swiss market is yet to experience a big shift.

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Prof. Lukas Glanzmann heads the Firm's European Restructuring & Insolvency Steering Committee and is a member of the European Banking & Finance Steering Committee. He further co-heads the Swiss Banking & Finance as well as the Restructuring & Insolvency practice groups. He is ranked among the leading lawyers in his areas of practice by various publications, including Chambers. Lukas Glanzmann graduated from the University of St. Gallen law school and obtained a doctoral degree in the field of corporate law from the University of St. Gallen and a LL.M. degree from Harvard Law School. In 2006, Lukas Glanzmann finished his habilitation and today, he holds the position of a titular professor of business law at the University of St. Gallen. Lukas Glanzmann has published various articles and books in the fields of corporate, finance, accounting, restructuring and insolvency law. Since 2012 he has been a member of the Swiss Federal Commission of Experts for the Commercial Register.

Author

Dr. Philip Spoerlé is an associate in Baker McKenzie’s Zurich office and a member of the Capital Markets, Banking & Finance and Mergers & Acquisitions practice groups. He joined the Firm in 2010 as a law clerk and rejoined as an associate in 2015. Prior to his return, Dr. Spoerlé worked for a global investment bank in the area of fixed income securities trading and as a research and teaching assistant to Prof. Dr. Lukas Glanzmann. Dr. Spoerlé graduated from the University of St. Gallen (MA in Law & Economics, 2011) and obtained a PhD (Dr. iur.) from the University of St. Gallen in 2015 for his doctoral thesis on the bearer share and the corporate law provisions implemented by the FATF Implementation Act. Dr. Spoerlé was admitted to the Zurich bar in 2013.

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Samuel Marbacher is the co-head of the Firm’s Real Estate practice as well as Banking & Finance practice in Zurich. He joined the Firm in January 2007 and was made partner in 2015.He graduated from the University of St. Gallen Law School and earned his LL.M. degree at the University of Sydney. Mr. Marbacher holds a bachelor's degree in business and finance from the University of Applied Science in Lucerne. Samuel Marbacher teaches at University of Zurich in the CUREM master and executive classes and at the IFZ Institute for Financial Services, Zug.

Author

Dr. Markus Wolf is a senior associate in Baker McKenzie's Banking & Finance and Restructuring & Insolvency teams in Zurich. He has previously worked in the Firm's Sydney office and was seconded to the legal team of one of Switzerland's leading banks. Prior to joining Baker McKenzie in 2012, he worked as a visiting associate with The Boston Consulting Group. Clients say: ‘Markus Wolf provides fast and professional services and is very pleasant to work with.’ (Legal 500, 2020). Markus is a lecturer on private law at the University of St. Gallen (HSG).

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