Its not canceled, theyre changing the issuing bank, hence the need to run credit again.
Someone sent me the letter that B&H sent them, which implies the following:
Accountholders
will keep your existing account with Synchony (and possibly transition to a new product). And will have the
option to
apply for a new Payboo CC with the new issuer.
Though DoC's quote implies the card will be closed, maybe that's what Synchrony is saying, IDK.