Has anyone else noticed that the Fed’s Main Street Expanded Loan Facility program can be acronymized as “F-MSELF”?

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Aggregate Funds Available –

A Federal Reserve Bank will lend up to $600 billion to a Special Purpose Vehicle (SPV), which will in turn purchase participations in either new loans under the Main Street New Loan Facility (MSNLF) or upsized tranches of existing loans under the Main Street Expanded Loan Facility (MSELF).

The SPV will purchase a 95% participation in MSNLF loans and MSELF upsized tranches at par value (the remaining 5% must be maintained by the Lender). The SPV and the Lender will share risk on a MSNLF loan or a MSELF upsized tranche on a pari passu basis.

Eligible Lenders –

U.S. insured depository institutions, U.S. bank holding companies, and U.S. savings and loan holding companies.

Eligible Loans –

Main Street New Loan Facility: provides funding for an unsecured term loan that (i) was originated on or after April 8, 2020, (ii) has a minimum loan size of $1 million and a maximum loan size that is the lesser of (a) $25 million or (b) an amount that, when added to the Borrower’s existing outstanding and committed but undrawn debt, does not exceed 4x EBITDA.

Main Street Expanded Loan Facility: provides funding for an upsized tranche of an existing term loan that was originated before April 8, 2020. The upsized tranche must have a minimum loan size of $1 million and a maximum loan size that is the lesser of (a) $150 million, (b) 30% of the Borrower’s existing outstanding and committed but undrawn bank debt, or (c) an amount that, when added to the Borrower’s existing outstanding and committed but undrawn debt, does not exceed 6x EBITDA.

If any collateral secures an upsized tranche (whether that collateral was pledged under the original terms of the underlying loan or at the time the loan was increased by the upsized tranche), the collateral will secure the participation on a pro-rata basis.

Key Loan Terms –

The following terms apply to both MSNLF loans and MSELF upsized tranches:

  1. Term. Four-year maturity.
  2. Interest Rate. Adjustable-rate of Secured Overnight Financing Rate (SOFR) plus 2.50 – 4.00%.
  3. Principal and Interest Payment Deferral. Both principal and interest will be deferred for one year.

TL;DR –

The Federal Reserve will take 95% of the repayment risk for loans between 1 and 150 Million USD; with principal and interest Deferred for 1 year. This program can be acronymized as F-MSELF.

Surely, this is an insiders joke?