Libor Floor. LIBOR Floor means 100 per annum as such percentage may be adjusted upward as contemplated by clause vi 1 of the section hereof entitled Uncommitted Incremental Facilities above. Amendment fallbacks however can vary markedly.
The floors which could. The Floor of course is the interest rate floor provided in the original loan agreement. A LIBOR floor is a provision in a loan agreement that establishes a minimum base floating rate to be paid by the borrower before the fixed spread.
LIBOR floors lately have proven to be godsends for alternative lenders providing them with downside protection as the benchmark one-month.
These floors have been a prominent feature. Instead of relating to a falling object however we apply the quote to short-term interest rates eg LIBOR and a derivative instrument the floor that is conditionally declaring its presence should rates drop. This week Refinitiv posted a chart that made our point more forcefully by looking at the level of LIBOR floors. Today most loans offer a 1 Libor floor and the 3-month Libor rate stands at 025 meaning a loan with a Libor floor gives investors a yield base thats three-quarters of a percentage point.
