On March 5, 2020, the ICE Benchmark Administration (IBA) announced plans to cease publishing the one-week and two-month London Interbank Offered Rates (LIBOR®) after December 31, 2021 and all other tenors after June 30, 2023.1
Why is LIBOR being replaced?
LIBOR is being replaced because the IBA, LIBOR’s administrator, won’t have access to input data necessary to calculate the rate’s settings on a representative basis beyond the above-mentioned cessation dates.
What will replace LIBOR?
Synovus offers several LIBOR alternatives, including the Secured Overnight Financing Rate (SOFR) and Term SOFR, the Bloomberg Short-Term Bank Yield Index (BSBY), as well as Prime and Treasury rates.
The bank also continues to evaluate other reference rates to ensure we can offer the most appropriate index for each product and client.
What happens if I have an existing LIBOR-based loan with Synovus?
If you have a loan or obligation tied to LIBOR that matures after the LIBOR cessation date,2 your Synovus Relationship Manager will contact you to discuss an appropriate successor rate. Synovus is committed to making this migration as seamless as possible for our customers and will communicate additional details as they become available.