Federal Reserve Publishes Updated Term Sheets for Primary Market Corporate Credit Facility and Secondary Market Corporate Credit Facility
On April 9, 2020, the Federal Reserve published updated terms sheets for the Primary Market Corporate Credit Facility (“PMCCF”) and the Secondary Market Corporate Facility (“SMCCF”). As discussed in our March 24, 2020 memorandum, available here, the PMCCF and SMCCF were among several new measures recently established by the Federal Reserve to support households, smaller and larger businesses, and to enhance overall market functioning and credit provision to the broader economy. The Department of the Treasury increased the size of its equity investment in the two facilities from $10 billion to $75 billion, with $50 billion allocated to the PMCCF and $25 billion to the SMCCF. The combined size of the facilities will be up to $750 billion.