14 unchanged sentences
However, interest rate fluctuations may affect the fair value of our fixed rate debt instruments.
−Removed: At March 31, 2026, we had $1.6 billion of fixed rate debt outstanding with an estimated fair value of $1.5 billion.
−Removed: If interest rates at March 31, 2026 had been 1.0% higher, the fair value of those debt instruments on that date would have decreased by approximately $52.8 million.
−Removed: If interest rates at March 31, 2026 had been 1.0% lower, the fair value of those debt instruments on that date would have increased by approximately $74.2 million.
+Added: At June 30, 2026, we had $1.6 billion of fixed rate debt outstanding with an estimated fair value of $1.5 billion.
+Added: If interest rates at June 30, 2026 had been 1.0% higher, the fair value of those debt instruments on that date would have decreased by approximately $38.8 million.
+Added: If interest rates at June 30, 2026 had been 1.0% lower, the fair value of those debt instruments on that date would have increased by approximately $83.9 million.
The carrying values of our revolving line of credit and term loan approximate fair value since the interest rates are variable and reset frequently based on SOFR.
−Removed: Additionally, we consider $100 million related to Term Loan A outstanding as of March 31, 2026 to be fixed rate debt as the rate is effectively fixed by interest rate swap agreements.
Variable Interest Rate Debt
−Removed: At March 31, 2026, we had $100.0 million of variable rate debt outstanding, all of which is subject to interest rate swaps as described above.
+Added: At June 30, 2026, we had variable debt of $100.0 million related to Term Loan A outstanding which is effectively fixed by interest rate swap agreements through January 5, 2027, subject to adjustments based on our consolidated leverage ratio.
+Added: After January 5, 2027, interest is accrued at a variable rate based on the applicable SOFR plus a spread which ranges from 1.20%-1.70% based on our consolidated leverage ratio.
+Added: Based upon this amount of variable rate debt, if market interest rates increased or decreased by 1.0%, our annual interest expense would increase or decrease, respectively, by approximately $0.5 million.
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.
See the discussion under Note 4 of the Notes to Consolidated Financial Statements included elsewhere herein for certain quantitative details related to the interest rate swaps and for a discussion on how we value derivative financial instruments.
−Removed: 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.
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