On 5 March 2021, the Financial Conduct Authority announced that immediately after 31 December 2021, LIBOR, the benchmark rate used as a key component of interest, default interest and other calculations in a wide range of contracts, will cease to be published.
Any exceptions will be very limited.
To ensure that your agreements remain functional and robust, any references to LIBOR in contracts expiring after the end of this year will need to be sense checked and amended where necessary.
This applies not only to loan and financing documents. It also catches any of your contracts where LIBOR may have been either deliberately or inadvertently referred to.
Security and guarantee documents will also need to be checked where contracts are changed, to ensure that your collateral remains valid. Any knock on impact under other contracts needs to be thought through too, in case consents, waivers or other consequential changes are necessary.
With so much to think about and limited time to action these changes, where do you start and how can you plan effectively for the end of LIBOR? Fortunately, help is at hand.
In this ThinkHouse session members from our Banking and Finance team will explain:
- the new SONIA and other new 'risk free rates' (RFRs) that are replacing LIBOR;
- how RFRs based interest calculations work;
- the operational issues using RFRs might create and what you need to be aware of before amending documents;
- why LIBOR phase out affects both banking and non-banking documents and what you need to think about if you see a LIBOR reference in any contract;
- how to approach and plan your LIBOR re-papering exercise successfully.
Throughout this live webinar there will be the opportunity for you to ask questions, and our speakers will answer as many as possible in the time available.
If you would like to approach the end of LIBOR with greater confidence, have more informed conversations with your key stakeholders and manage end of LIBOR risk more effectively, then this session is for you!
This event is free of charge.
Gowling WLG is an accredited provider with the Bar Standards Board (provider ID number 1940). For all other professions, we suggest that you check with your professional body or your learning and development team as to whether this event meets the CPD requirements for your profession. Please do get in touch if you have any further queries about this event and CPD.
Gowling WLG is committed to ensuring people with disabilities can participate fully in our events. If you would like to attend this event and there is something which will help you do so more easily, please provide details to the event organiser.