Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
Interest Rate Risk
As of April 30, 2025, the outstanding balance of the Credit Facilities was $39.4 million. On May 1, 2025 in connection with the closing of the BlueHalo acquisition, we entered into the Fourth Amendment of the Credit Facilities. The Fourth Amendment provided a new $700.0 million Term A Loan. The Fourth Amendment also increased the revolving commitment amount to an aggregate principal amount of $350.0 million, and on May 1, 2025, we borrowed approximately $225.0 million from the Revolving Credit Facility. As a result, as of May 1, 2025, the outstanding balance of the Credit Facilities was $955.0 million and bears a variable interest rate. If market interest rates increase significantly, interest due on the Credit Facilities would increase. An increase or decrease in the variable interest rate of 100 basis points would result in an increase or decrease to our interest expense for the fiscal year ending April 30, 2026 of approximately $9.5 million.
Foreign Currency Exchange Rate Risk
Since a significant part of our sales and expenses are denominated in U.S. dollars, we have not experienced significant foreign exchange gains or losses to date. We currently do not engage in forward contracts or other derivatives in foreign currencies to limit our exposure on non-U.S. dollar transactions. As our German subsidiary, Telerob conducts sales denominated in Euros, we are exposed to future foreign exchange gains or losses, and we will consider methods to limit our exposure on non-U.S. dollar transactions in the future.
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