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 has other options such as Prime and Treasury rates which may be fitting alternatives for LIBOR depending on the situation. In addition, Synovus will offer the Secured Overnight Financing Rate (SOFR) and the Bloomberg Short-Term Bank Yield Indec (BSBY) as a replacement to LIBOR.
Synovus is expanding its product offerings, and there are currently several viable alternative reference rates being evaluated for use as potential replacements of LIBOR.
What happens if I have an existing LIBOR-based loan with Synovus?
Synovus will be able to offer new loans tied to SOFR or BSBY beginning third quarter 2021. If you have a loan or obligation tied to LIBOR that matures after the LIBOR cessation date,2 a Synovus Relationship Manager will contact you to discuss the successor rate when there is greater clarity as to successor indices. Synovus is committed to making this migration as seamless as possible for our customers and will communicate additional details as they become available.