Our friends from the financial services industry are in love with reference rates. They admire LIBOR because it saves a lot of interest rate mismatch headache. But wait, looks like LIBOR is going to disappear from 2021! Indeed, following the announcement by Andrew Bailey, the Chief Executive of the UK’s Financial Conduct Authority that FCA will no longer compel or encourage panel banks quotations for the purposes of calculating LIBOR after 2021, it has become possible that LIBOR may cease to be published or that parties may wish to use another benchmark rate in its stead.
You may soon find out that your lawyers forgot to include in your loan documentation a “market disruption event" clause and therefore you don’t know what’s going to happen after 2021. There is no need to worry about that. It will take you a little time to amend your legal documentation and we know how to do that. We have experience in drafting “market disruption event” or “replacement screen rate” clauses. Focus on the numbers and we will spare you a headache of looking into complex legal documentation! #yoursupportteam