Why all in-house counsel need to prepare for the end of LIBOR

28 April 2021

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. 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.

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? In this ThinkHouse session members from our Banking and Finance team 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.

NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Gowling WLG professionals will be pleased to discuss resolutions to specific legal concerns you may have.