AVALON HOLDINGS CORP 10-Q

Item 3. Quantitative and Qualitative Disclosures about Market Risk   Avalon does not have significant exposure to changing interest rates.   Borrowings under our New Term Loan Agreement bear interest at a fixed rate of 6.00% until the seventh anniversary date of the closing at which time the interest rate will be reset to a fixed rate equal to the greater of (a) 6.00% per annum or (b) the sum of the three year treasury rate on the date two (2) business days prior to the reset date plus 3.40%, provided that the applicable rate shall in no event exceed 8.50% per annum.   Outstanding borrowings under our Line of Credit Agreement bear interest at Prime Rate plus .25%. At June 30, 2022, the interest rate on the Line of Credit Agreement was 5.00%. No amounts were outstanding under the Line of Credit Agreement at June 30, 2022.   Avalon does not undertake any specific actions to cover its exposure to interest rate risk and Avalon is not a party to any interest rate risk management transactions. Avalon does not purchase or hold any derivative financial instruments.