QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: As of September 30, 2020, on a consolidated basis, we had approximately $69.5 million of variable-rate property-level debt outstanding in addition to our $350.0 million term loan.
−Removed: We estimate that a change in 30-day LIBOR of 100 basis points with constant credit risk spreads would reduce or increase interest expense by approximately $0.7 million and $3.0 million, respectively, on an annual basis.
−Removed: During the nine months ended September 30, 2020, we paid an upfront premium of $12.1 million for the option to enter into an interest rate swap at a future date.
−Removed: This interest rate option, or swaption, provides partial protection against our refinancing interest rate risk and is intended to mitigate interest rate increases between now and 2024.
+Added: As of March 31, 2021, on a consolidated basis, we had approximately $55.0 million of variable-rate property-level debt.
+Added: We estimate that a change in 30-day LIBOR of 100 basis points with constant credit risk spreads would reduce or increase interest expense by approximately $0.6 million.
+Added: In 2020, we paid an upfront premium of $12.1 million for the option to enter into an interest rate swap at a future date.
+Added: This interest rate option, or swaption, provides partial protection against our refinancing interest rate risk and is intended to mitigate interest rate increases between now and October 2024.
We receive a cash settlement in the future if the prevailing interest rate is higher than the 1.68% strike price.
−Removed: The amount of future cash settlement is limited if the prevailing interest rate exceeds 2.78%.
−Removed: Alternatively, if interest rates were to decrease below the specified strike price, we would not receive a cash settlement.
−Removed: As of September 30, 2020, we had approximately $268.5 million of cash and cash equivalents and restricted cash, a portion of which bears interest at variable rates, which may offset somewhat a change in rates on our variable-rate debt discussed above.
+Added: The amount of a future cash settlement is capped if the prevailing interest rate exceeds 2.78%.
+Added: Alternatively, if interest rates were to decrease below the specified strike price, we would not receive a cash settlement nor would we have any liability to make a payment.
+Added: During the three months ended March 31, 2021, we paid an upfront premium of $5.6 million (including transaction costs) for the option to enter into an interest rate swap at a future date.
+Added: This interest rate option, or swaption, provides partial protection against our refinancing interest rate risk relative to our notes payable to AIR and is intended to mitigate interest rate increases between now and January 2024.
+Added: We receive a cash settlement in the future if the prevailing interest rate is higher than the 3% five year swap strike price.
+Added: Alternatively, if interest rates were to decrease below the specified strike price, we would not receive a cash settlement nor would we have any liability to make a payment.
+Added: As of March 31, 2021, the estimated fair value of total indebtedness, including our notes payable to AIR, was approximately $985.8 million.
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.