The Client Asks: What Happens When LIBOR Ends?


This practice note describes how you should proceed when your client calls and asks what happens to their loan documents after the pending cessation of LIBOR at the end of 2021. Lender and borrower clients with credit agreements that extend past that date and borrowers entering into new financings are asking their lawyers how their financings address the potential loss of LIBOR. This note explains what to look for to ensure that your credit agreement contemplates the end of LIBOR—and what to do if it does not.