British American Business Council of Greater Philadelphia

On Monday, May 20, 2019, the British American Business Council of Greater Philadelphia welcomed His Excellency Sir Kim Darroch KCMG, British Ambassador to the United States, to Philadelphia. Ambassador Darroch’s diplomatic career spans three decades, and has been primarily focused on national security issues and European Union policy. From 2004 to 2007, he was EU Advisor to the Prime Minister.  Ambassador Darroch served in Brussels as the UK Permanent Representative to the European Union from 2007 to 2011.  From January 2012 to September 2015 he served as the Prime Minister’s National Security Advisor, and was Secretary of the National Security Council.  Sir Kim was appointed British Ambassador to the United States in January 2016, and this was his first official visit with the Greater Philadelphia international business community.

Michael Pedrick, President of the BABCPHL welcomed guests to the lunch in honor of his Excellency. Michael spoke briefly about the BABCPHL mission and the role the Organization has served for nearly 30 years.  He recognized and thanked several VIPs who participated in the program: Louise Nicol, Chief of Staff to Her Majesty’s Ambassador; Laura Hickey, Deputy Consul General, British Consulate New York; Paul Schipul, Vice Consul, Political Affairs at British Consulate General New York; Rebecca Lewis, Deputy Head of Trade & Investment, Overseas Co-Chair DIT Women, Department for International Trade, British Consulate General New York; Gareth Morgan, Head of North America, Welsh Government; Oliver St. Clair Franklin, Honorary British Consul of Greater Philadelphia; Frank Giordano, Honorary Consul of Malta; Efe Izilein Sokol, Senior Representative, Welsh Government; Harold Epps, Commerce Director, Department of Commerce, City of Philadelphia; and Pierre-Olivier Lugez, Manager, International Business, Department of Commerce, City of Philadelphia.  Michael introduced Harold who spoke briefly about the Mayor and Commerce Department’s recent business development and retention trip to the UK.  Harold talked about the success of the UK visit, and the strong historic and economic ties between the two regions before introducing Ambassador Darroch, our luncheon program keynote speaker.

Ambassor Darroch’s remarks focused on the important trade relationship as well as the current political and economic climate influencing transatlantic ties. His 15 minute discussion included comments about the more than $1trillion bilateral trading market between the UK and the US; the context for Brexit; and the anticipated trade deal with the US.  Ambassador Darroch spoke about the strength of the British economy, and where we are now with respect to the complex and difficult Brexit negotiation process.  He concluded his remarks by welcoming questions from guests.  Ambassador Darroch encouraged an open dialogue forum with attendees.  Questions included queries about President Trump’s upcoming visit to the UK; the Good Friday Agreement; the UK/Canadian trade relationship; how the different political parties might reconcile Brexit differences, etc. Ambassador Darroch was eager to meet and speak with government leaders and corporate executives.  We were honored to welcome Ambassador Darroch, and to provide an open forum of discussion for him to interact with the international business community.

Special thanks to corporate table supporters: British Honorary Consul of Greater Philadelphia – Oliver St. Clair Franklin; The Department for International Trade; Morgan Lewis & Bockius; Penn Medicine; Virgin Atlantic Airways; and The Welsh Government.

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On Thursday, May 16, 2019, the BABCPHL hosted a finance seminar about The Secured Overnight Financing Rate (SOFR) at the Chamber of Commerce for Greater Philadelphia. In 2021, the London Interbank Offered Rate (LIBOR), the world’s most important financial rate, will go away, but it is unclear what will replace the index used in virtually every significant credit arrangement, bond, swap and financial instrument. The volume of financial contracts based on LIBOR is estimated at $200 trillion.  The change will affect every company and financial institution.  The Federal Reserve Bank of New York has proposed that SOFR become the new lending resource rate. It is the rate banks will pay on the repurchase agreement market for borrowing overnight. US regulators anticipate SOFR will be widely adopted to back the derivatives and loans market, and to be the universally accepted replacement for the outgoing LIBOR.

Not SOFR away. Are you ready? What can you expect and what are the implications of losing LIBOR and adopting SOFR?  This timely and interactive seminar featured experts in the field who addressed the following questions:

• What is SOFR?
• How will moving to SOFR change credit agreements, swaps, and other financial instruments?
• How to navigate the transition?
• What should parties be doing now?

Michael Pedrick, Partner at Morgan Lewis & Bockius LLP and President BABCPHL opened the session by welcoming attendees and introducing the topic and speakers. Michael moderated the seminar, and provided a discussion about moving away from LIBOR to SOFR.  He talked about the credit facilities that would be affected by the transition; how financial instruments should address the change; actions to be taken to prepare; and provided a review of contractual terms anticipating the discontinuance of LIBOR.  Michael also discussed strengthening provisions in new credits and amendments, and what parties need to do to prepare as transition approaches to provide greater clarity and security for existing facilities.

Gennadiy Goldberg, Senior US Rates Strategist, Global Strategy, TD Securities USA (LLC) conducts research and provides market commentary on interest rates and the US economy. He focuses on Treasuries, swaps, TIPS, supranationals and agencies, as well as green bonds.  Prior to joining TD in 2012, Gennadiy worked as a Fixed Income Strategist at an independent research firm, Continuum Economics.  Gennadiy’s presentation provided a deeper dive into the topic.  He discussed the reasons for the discontinuance of LIBOR, and the role of Fed and ARRC.  Gennadiy talked about TD’s role in the transition process, and the current status of the move.

Richard Mejzak, CFA, Managing Director and portfolio manager, is Global Head of Portfolio Management for Cash Management, within BlackRock’s Trading & Liquidity Strategies group. He is primarily responsible for USD & CDN liquidity and short duration portfolios, including securities lending collateral, mutual funds, separate accounts, and ETFs.  Rich’s service with the firm dates back to 1990, including his years with Merrill Lynch Investment Managers, which merged with BlackRock in 2006.  Rich is a member of the CFA Institute and the CFA Society of Philadelphia.  He earned a BS degree in accounting from Villanova University and serves on the Villanova School of Business Finance Department Advisory Council. Rich’s presentation focused on the investor side of things.  He discussed the impact on structuring investment portfolios; the impact of change on existing investment portfolios; and structuring current investments while addressing the transition.

Ken Menezes, Managing Director Treasury, Asset and Fuel & Energy Management at American Airlines is responsible for the overall jet fuel supply chain including contract management, logistics and airport operations, managing the investment activity of the various retirement and health/welfare plans, providing oversight of the Company’s short term investments and surety bond portfolio, managing corporate financial risk including interest rate risk, FX risk and commodity risk, and providing analytical support for the Treasury department. Ken has a Master’s in Business Administration from Southern Methodist University and is also a CFA® charter holder. Ken’s presentation covered the perspective of a significant corporate borrower.  He discussed the issues implicated by the transition from LIBOR to SOFR and how a company should prepare for the change. His speech focused on floating rate facilities; private aircraft mortgages—3-6 month LIBOR, beyond 2021 set date; amendments and implementations.  He also covered the importance of developing language, working with lenders about how to document the new protocol, and what the impact on corporate investments might look like.

Special thanks to sponsors: American Airlines; BlackRock; Morgan Lewis & Bockius LLP; and TD Securities. The British Chamber was honored to partner with the French American Chamber of Commerce and the World Trade Center of Philadelphia to deliver this seminar.

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On Thursday, March 7, 2019, the British American Business Council of Greater Philadelphia hosted the eighth annual New Jersey Networking Event and Dinner at The British Chip Shop in Haddonfield, New Jersey. The event sold out shortly after registration opened!  Approximately 50 BABCPHL members and friends occupied the restaurant for a fun-filled pub night.  The new Chip Shop proprietors offered attendees an outstanding selection of specialty beers and delicious appetizers, a traditional British pub style main course, and traditional tea and biscuits and sticky toffee pudding for dessert.  Adding to the enjoyment of the evening, the Philadelphia Union presented each attendee with two complimentary tickets to a Philadelphia Union home game, and lead sponsor, United Airlines offered three mileage plus gold status memberships.

Howard Silverstone, BABCPHL Membership Chairman, welcomed attendees. Howard introduced special guest, Ross Allen, Director, North America, Department for International Trade who discussed the important relationship the State of New Jersey has with the United Kingdom.  Howard thanked Ross and his team for supporting the BABCPHL, and provided guests with a brief introduction about the Organization, before asking each event sponsor to say a few words.  Leon Dutkiewicz, Partner, Citrin Cooperman; Jay Jumper, Partner, Pepper Hamilton; and Richard Chibbaro, Sales Manager, United Airlines, each spoke briefly about their relationship with the BABCPHL and their companies.  Following sponsor remarks, winning business cards were drawn for three United Airlines mileage plus status memberships.  Attendees were then invited to sit and enjoy dinner.  Guests remained long into the evening, continuing to mingle.

We extend special thanks to lead sponsors, Citrin Cooperman, Pepper Hamilton LLP, and United Airlines; supporting sponsors, the Department for International Trade and Forensic Resolutions; and door prize donor, Philadelphia Union.

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