Libor Transition

The London Interbank Offered Rate (Libor), one of the most widely used interest rate benchmarks in the world, underlies trillions of dollars in outstanding contracts in maturities ranging from overnight to more than 30 years, according to its administrator, the Intercontinental Exchange (ICE) Benchmark Administration. As widely expected, the United Kingdom's Financial Conduct Authority (FCA), the regulator for Libor, has confirmed that all Libor settings will either cease to be provided by any administrator or no longer be representative immediately after 1) Dec. 31, 2021, in the case of all sterling, euro, Swiss franc and Japanese yen settings, as well as the one-week and two-month U.S. dollar settings, and 2) June 30, 2023, in the case of the overnight, one-month, three-month, six-month and 12-month U.S. dollar settings.

Holland & Knight's Libor Transition Team includes attorneys across a wide range of the firm's practice areas, providing multi-disciplinary solutions to assist clients in all aspects of the Libor transition. Our team includes lawyers experienced in each of the following areas, ensuring that Holland & Knight can address all of our clients' businesses and concerns:

• Asset Finance
• Commercial Lending
• Commercial Real Estate Leasing
• Construction
• Derivatives
• Energy
• Financial Services
• Healthcare & Life Sciences
• Litigation and Dispute Resolution
• Project Finance
• Public Companies and Securities
• Public Finance
• Real Estate Finance
• Structured Finance
• Taxation

Holland & Knight's Libor Transition Team advises clients of all sizes and across multiple jurisdictions, including public and private corporations, funds, municipal entities, energy providers, housing and real estate developers, banks, private individuals, nonprofit organizations, higher education institutions, healthcare entities and others. Our team actively monitors all of the latest developments in the Libor transition, including recommendations from the Federal Reserve Board's Alternative Reference Rates Committee (ARRC), regulatory guidance, legislative proposals and industry trends, to ensure that our clients have the most up-to-date information.

Our attorneys advise clients with respect to the implications of fallback provisions and benchmark discontinuation in all types of transactions, businesses and contracts – from individual consumer and commercial loans, leases and other credit agreements to large debt portfolios, including both new and legacy agreements – and can provide guidance on tax implications, regulatory compliance and other consequences of the Libor transition. Swaps, hedges and other derivatives are uniquely impacted by the Libor transition and our team advises clients on all facets of the transition, including review of existing swap and hedge portfolios and the implications of International Swaps and Derivatives Association (ISDA) protocol adherence. In addition, our attorneys can advise on dispute resolution and litigation arising from all of these issues.

For clients with large portfolios of legacy transactions, our team has developed a cutting-edge proprietary technology solution to expedite the review, categorization and remediation of high volumes of contracts, which can be personalized and calibrated for an individual client's needs.

Industry Experience and Connections

Our attorneys are members of the American Bar Association's Working Group on Libor as well as the ISDA Americas and Europe Benchmark Working Group. In addition, we are members of the Loan Syndications and Trading Association (LSTA), the Loan Market Association (LMA) and other industry organizations at the forefront of Libor transition documentation, policy and advocacy.

Our team members have published extensive alerts and articles addressing various aspects of the Libor transition, and also have been invited to speak on a number of industry panels related to the transition.

With our extensive range of practice areas and industry-leading knowledge, Holland & Knight's Libor Transition Team is particularly suited to advise clients of all types on all aspects of the legal and operational challenges posed by the Libor transition.