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Author: Don Obrien

LIBOR Transition: Synthetic Sterling LIBOR For Limited Tough Legacy Loans – Finance and Banking



United States:

LIBOR Transition: Synthetic Sterling LIBOR For Limited Tough Legacy Loans


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As the cessation of LIBOR panels draws closer, the Financial
Conduct Authority (the “FCA”) has been looking at ways to
mitigate market disruption in respect of tough legacy loans which
link to LIBOR but expire after LIBOR is discontinued. As a result,
the FCA will require ICE Benchmark Administration to publish a
synthetic Sterling LIBOR for the duration of 2022.

Despite at first instance appearing to be a solution for
products which have yet to be amended for the cessation of LIBOR,
synthetic LIBOR is only intended to be used for certain tough
legacy contracts. To learn more about how synthetic LIBOR will work
in practice and the legacy contracts which are likely to be able to
utilize synthetic LIBOR, check out our Alert
here
.

Duane Morris’ LIBOR Transition Team:  Roger
S. Chari
, Chair, Joel
N. Ephross

Amelia (Amy) H. Huskins
, Phuong
(Michelle) Ngo
and Natalie
A. Stewart
.

Disclaimer: This Alert has been
prepared and published for informational purposes only and is not
offered, nor should be construed, as legal advice. For more
information, please see the firm’s

full disclaimer
.

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