Associated British Ports has issued papers to the holders of its GBP 65 million FRN due 2022 asking them to vote on 11th June on an amendment to the interest rate. At the moment ABP pays 2.5% over 3 month LIBOR. The proposal would change it to 2.5% over compounded daily SONIA (backward-looking of course) plus a margin to equalise between bank risk and risk-free. The notes have between 3 and 4 years to run, so this margin is the interpolation between the 3 and 4 year “3 million GBP LIBOR vs SONIA basis for Sterling basis swap transactions” which appear on Bloomberg page ICAB9. It’s the first time in the market that a legacy FRN issue amendment has been attempted. All the documentation – the “Consent Solicitation Memorandum”, the “Draft Supplemental Trust Deed” and the Notice of Meeting” – is available on the ABP website. Expect a deluge of these if the noteholders approve this. Will they think the ICAB9 rate (a page most of us have probably never heard of before) is a fair one (or even unfairly in their favour)? Many investors are suspicious of any rebasing that shifts value, and of course the interim wording from ISDA, the LMA and so on all identifies that any successor solution to a legacy IBOR must avoid this. Definitely one to watch.