After June 30, Truist Financial will use CME term SOFR as the replacement reference rate for certain outstanding floating rate and fixed-to-floating rate debt securities and preferred stock issued by the company and certain of its subsidiaries that use three-month U.S. dollar LIBOR as the reference rate and that are governed by U.S. law or the law of a U.S. state.
In accordance with the Adjustable Interest Rate Act (the “LIBOR Act”) and the regulation issued by the board of governors of the Federal Reserve System on Dec. 16, 2022, implementing the LIBOR Act (the “LIBOR Rule”), three-month CME Term SOFR will be the reference rate for calculations of the amount of interest or dividends payable with respect to interest or dividend periods with reference rate determination dates occurring after June 30 on certain securities (the “legacy LIBOR securities”).
The replacement rate, and therefore calculation of the amount of interest or dividends payable on the legacy LIBOR securities for interest or dividend periods with reference rate determination dates that occur after June 30, will also include a three-month tenor spread adjustment of 0.26161% per annum as specified in the LIBOR Act.
