If your company’s leveraged loan transitioned from LIBOR to SOFR after January 1, 2023, your company may have paid millions in excess interest due to an alleged anticompetitive conspiracy among major CLO equity investors. Scott+Scott Attorneys at Law LLP (“Scott+Scott”) previously filed a federal antitrust lawsuit, and the U.S. Department of Justice Criminal Antitrust Division is investigating the same conduct.
Our prior complaint (available here) details evidence suggesting that large CLO equity investors—including Eagle Point, Capra Ibex, Fair Oaks, Livermore, Eldridge, and Pearl Diver—coordinated during the LIBOR-to-SOFR transition to artificially inflate the interest rates borrowers paid. These investors allegedly formed working groups, shared information about pending loan amendments, and collectively pressured CLO managers to reject amendments unless borrowers agreed to elevated “credit spread adjustments.” Independent economic analysis confirms that borrowers who transitioned during this period paid significantly more than those obtaining newly issued SOFR loans under competitive market conditions.
The impact was substantial and lasting. Many affected borrowers continue paying these inflated rates through loan maturity, resulting in millions of dollars in unjustified interest expense per loan. Scott+Scott is pursuing the recovery of these overcharges on behalf of corporate borrowers nationwide.
Learn Whether Your Company Can Recover Excess Interest Payments
To determine whether your loan was affected, complete the form below. A Scott+Scott attorney will review your loan history, assess potential damages, and explain your rights at no cost and with no obligation. We represent borrowers on a complete contingency fee basis.