The London Inter-bank Offered Rate (LIBOR), one of the main interest-rate benchmarks used globally in the financial markets will, by the end of 2021, be retired.
Despite standardised wording being available in the market, the approach adopted to implementing these changes varies considerable between lenders. Lenders with LIBOR based rates in their loans will be contacting borrowers advising them of the changes or requiring their consent to implement them NOW.
Not only will the LIBOR changes impact direct facilities with banks but any facility over which a local authority, higher education provider or NHS Trust has an interest or consent right that includes a LIBOR linked interest rate including PFI and PPP financing facilities, hire-purchase agreements and on-lending arrangements.
The Banking & Finance team at Bevan Brittan LLP have experience advising borrowers from all the major lenders on the proposed changes. As such we are uniquely positioned to be able to provide a fixed price service to local authorities, higher education providers and NHS Trusts looking to cut through the legal and financial jargon and understand the implications of the change for them or implement it themselves (as required).
For further information on how we can assist you with the transition to LIBOR please get in contact.