Today, on March 17, 2020, the Federal Reserve provided a backstop of commercial paper (“CP”) in the form of a Commercial Paper Funding Facility (“CPFF”) that establishes a special purpose vehicle (“SPV”) to acquire eligible CP directly from eligible issuers.  The CPFF will provide liquidity to CP issuers that may otherwise face issues rolling over their CP in the coming weeks and months as a result of economic disruptions caused by COVID-19.

Click here to read Covington’s client alert summarizing these developments.