On July 29, 2021, the Alternative Reference Rates Committee of the Federal Reserve Bank of New York (the “ARRC”) officially recommended for usage the forward-looking SOFR term rates (collectively, “Term SOFR”) published by the CME Group. With Term SOFR now ready for use, market participants should evaluate how and when to adopt Term SOFR in new and existing debt instruments and take steps to comply with the CME Group’s stated licensing requirements. Below we provide some background on Term SOFR and its development and discuss a few practical considerations for its use.