Amentum Holdings, Inc. 10-K

Item 7A. Quantitative and Qualitative Disclosure About Market Risk Prior to the Transaction, the interest rates on both of our first lien credit agreement, which consisted of a $1,090 million first lien tranche 1 term facility and a $2,266 million first lien tranche 3 term facility (collectively, the “Prior First Lien Term Facilities”), and our second lien credit agreement, which consisted of a $335 million second lien tranche 1 term facility and a $550 million second lien tranche 2 term facility (collectively, the “Second Lien Term Facilities”), were affected by changes in market interest rates. We have the ability to manage these fluctuations in part through interest rate swaps on our variable rate debt. We have entered into floating-to-fixed interest rate swap agreements for an aggregate notional amount of $1.90 billion related to a portion of our variable rate debt. On September 27, 2024, in connection with the consummation of the Transaction, we repaid all outstanding borrowings under the Prior First Lien Term Facilities and the Second Lien Term Facilities and entered into the New Credit Facility, which provides for the Term Loan and Revolver. All remaining balances under the Term Loan, and any additional amounts that may be borrowed under the Revolver, are currently subject to interest rate fluctuations. With every one percent fluctuation in the applicable interest rates, interest expense on our variable rate debt for the year ended September 27, 2024 would have fluctuated by approximately $42 million. 53