A contractual fallback that was set out in the LIBOR wording for the purpose of triggering a switch to the fallback (risk-free rate RFR plus margin) when the publication of LIBOR was discontinued in 2021.

A cessation trigger was utilized and set in motion when LIBOR ceased to be available as a reference rate. The fallback rate, by nature, is an alternative rate of interest that would have been applicable under the terms of the contract if the defined rate had become unavailable for some reason (such as the case when the reference rate cannot be determined and published). A fallback rate is a replacement rate that can be used for calculation and determination of financial obligations related to an arrangement or contract (or an instrument or product, e.g., floating rate bonds).