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Interest Rate Risk
−Removed: During the three months ended March 31, 2021, the Company borrowed an additional $80.0 million, resulting in $80.0 million of outstanding variable rate debt as of March 31, 2021.
+Added: During the six months ended June 30, 2021, the Company borrowed an additional $790.0 million and paid down $170.0 million on its revolving credit facility, resulting in $620.0 million of outstanding variable rate debt as of June 30, 2021.
We may incur additional variable rate debt in the future, including additional amounts that we may borrow under our revolving credit facility.
−Removed: As of March 31, 2021, assuming no change in the outstanding balance of our existing variable rate debt, which bears interest at the London Inter-Bank Offered Rate (“LIBOR”) plus 1.20% and is subject to a zero percent LIBOR floor, a hypothetical 100 basis point increase or decrease in LIBOR would increase or decrease our projected annual interest expense by approximately $0.8 million or $0.1 million, respectively.
+Added: As of June 30, 2021, assuming no change in the outstanding balance of our existing variable rate debt, which bears interest at the London Inter-Bank Offered Rate (“LIBOR”) plus 1.10% and is subject to a zero percent LIBOR floor, a hypothetical 100 basis point increase or decrease in LIBOR would increase or decrease our projected annual interest expense by approximately $6.2 million or $0.6 million, respectively.
This analysis does not consider the effects of the reduced level of overall economic activity that could exist in such an environment.
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We do not hold or issue these derivative contracts for trading or speculative purposes.
−Removed: As further described in Note 13.
−Removed: Fair Value to our condensed consolidated financial statements in this report, during the three months ended March 31, 2021, in anticipation of a debt issuance and in order to hedge interest rate risk, the Company entered into a treasury lock agreement with a notional amount of $400.0 million based on the 10-year treasury note rate at the time.
−Removed: The treasury lock was designated as a cash flow hedging instrument and had a fair value of $9.2 million recognized as an unrealized gain in the condensed consolidated financial statements as of March 31, 2021.
−Removed: If the 10-year treasury note rate were to decrease, there would be a corresponding decrease in the unrealized gain or loss on our treasury lock.
−Removed: The treasury lock will be settled upon the issuance of debt and the amounts recorded in other comprehensive income will be reclassified into earnings as a reduction of interest expense over the term of the debt.
There have been no other material changes to our market risk from those disclosed in section Part II, “Item 7A.
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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.