14 unchanged sentences
However, interest rate fluctuations may affect the fair value of our fixed rate debt instruments.
−Removed: At September 30, 2022, we had $1.38 billion of fixed rate debt outstanding with an estimated fair value of $1.24 billion.
−Removed: The carrying values of our revolving line of credit and term loans are deemed to be at fair value since the outstanding debt is directly tied to monthly LIBOR or SOFR contracts.
−Removed: If interest rates at September 30, 2022 had been 1.0% higher, the fair value of those debt instruments on that date would have decreased by approximately $51.2 million.
−Removed: If interest rates at September 30, 2022 had been 1.0% lower, the fair value of those debt instruments on that date would have increased by approximately $66.5 million.
−Removed: Additionally, we consider $250.0 million related to Term Loan A, Term Loan B and Term Loan C outstanding as of September 30, 2022 to be fixed rate debt as the rate is effectively fixed by an interest rate swap agreement.
+Added: At March 31, 2023, we had $1.4 billion of fixed rate debt outstanding with an estimated fair value of $1.3 billion.
+Added: The carrying values of our revolving line of credit and term loans are deemed to be at fair value since the outstanding debt is directly tied to monthly SOFR contracts.
+Added: If interest rates at March 31, 2023 had been 1.0% higher, the fair value of those debt instruments on that date would have decreased by approximately $48.2 million.
+Added: If interest rates at March 31, 2023 had been 1.0% lower, the fair value of those debt instruments on that date would have increased by approximately $66.9 million.
+Added: Additionally, we consider $325.0 million related to Term Loan A, Term Loan B and Term Loan C outstanding as of March 31, 2023 to be fixed rate debt as the rate is effectively fixed by interest rate swap agreements.
Variable Interest Rate Debt
−Removed: At September 30, 2022, we had $250.0 million of variable rate debt outstanding.
+Added: At March 31, 2023, we had $325.0 million of variable rate debt outstanding, all of which is subject to interest rate swaps as described above.
We have historically entered into forward starting interest rate swaps in order to economically hedge against the risk of rising interest rates that would affect our interest expense related to our future anticipated debt issuances as part of its overall borrowing program.
1 unchanged sentence
Based upon this amount of variable rate debt and the specific terms, if market interest rates increased or decreased by 1.0%, our annual interest expense would not change and have no corresponding change in our net income and cash flows for the year, since this variable rate debt is effectively fixed by interest rate swap agreements.
−Removed: Mortgage Interest Rate Risk
−Removed: On July 25, 2022, we entered into an interest rate lock agreement with PNC Bank, National Association ("PNC"), in an original principal amount not to exceed $75 million and a fixed interest rate of 5.08%.
−Removed: In connection with the interest rate lock agreement, PNC hedged the fixed interest rate itself, which is intended to reduce the interest rate variability exposure of a prospective five-year non-recourse mortgage of our City Center Bellevue property, which closed on September 16, 2022, as described in the notes to the consolidated financial statements.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.