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.

For more information about these rates see below.

SOFR
BSBY

Important disclosure information

This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here and take no liability for your use of this information.

  1. There may be changes to the LIBOR transition timeframe set forth above and, as a result, the information presented herein is subject to change without additional notice. Back
  2. Ibid Back