5 unchanged sentences
We are exposed to changes in the level of interest rates and to changes in the relationship or spread between interest rates.
−Removed: Our primary interest rate exposures relate to our lease agreements and floating rate debt obligations and interest rate derivatives.
+Added: Our primary interest rate exposures relate to our floating rate debt obligations.
Rent payments under our aircraft lease agreements typically do not vary during the term of the lease according to changes in interest rates.
3 unchanged sentences
There is no assurance that any such alternative, successor or replacement reference rate will be similar to, or produce the same value or economic equivalence of, LIBOR.
−Removed: Changes in interest rates may also impact our net book value as our interest rate derivatives are periodically marked-to-market through shareholders’ equity.
−Removed: Generally, we are exposed to loss on our fixed pay interest rate derivatives to the extent interest rates decrease below their contractual fixed rate.
−Removed: The relationship between spreads on derivative instruments may vary from time to time, resulting in a net aggregate book value increase or decrease.
−Removed: Changes in the general level of interest rates can also affect our ability to acquire new investments and our ability to realize gains from the settlement of such assets.
Sensitivity Analysis
2 unchanged sentences
Although the following results of a sensitivity analysis for changes in interest rates may have some limited use as a benchmark, they should not be viewed as a forecast.
−Removed: This forward-looking disclosure also is selective in nature and addresses only the potential interest expense impacts on our financial instruments and, in particular, does not address the mark-to-market impact on our interest rate derivatives.
+Added: This forward-looking disclosure also is selective in nature and addresses only the potential interest expense impacts on our financial instruments.
It also does not include a variety of other potential factors that could affect our business as a result of changes in interest rates.
−Removed: A hypothetical 100-basis point increase/decrease in interest rates on our leases subject to variable rental rates would increase/decrease the minimum contracted rentals in our portfolio as of May 31, 2021 by $0.5 million and $0.1 million, respectively, over the next twelve months.
−Removed: As of May 31, 2021, a hypothetical 100-basis point increase/decrease in interest rates on our variable rate borrowings would result in an interest expense increase/decrease of $3.9 million and $0.9 million, respectively, net of amounts received from our interest rate derivatives, over the next twelve months.
−Removed: We have an interest rate cap to hedge a portion of our floating rate interest exposure which is set at 2% and has a current notional balance of $220.0 million and reduces over time to $215.0 million.
−Removed: The cap matures in September 2021.
+Added: As of August 31, 2021, a hypothetical 100-basis point increase/decrease in interest rates on our variable rate borrowings would result in an interest expense increase/decrease of $3.6 million and $0.5 million, respectively, net of amounts received from our interest rate derivatives, over the next twelve months.
+Added: Our interest rate cap that hedged a portion of our floating rate interest exposure matured in September 2021.
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.