2 unchanged sentences
Our use of derivative instruments is intended to manage our exposure to interest rate movements.
−Removed: To achieve our objectives we borrow primarily at fixed rates or variable rates with the lowest credit spreads available.
With regard to variable-rate financing, we assess interest rate risk by continually identifying and monitoring changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating hedging opportunities.
We maintain risk management control systems to monitor interest rate cash flow risk attributable to both our outstanding and forecasted debt obligations, as well as our potential offsetting hedge positions.
−Removed: The risk management control systems involve the use of analytical techniques, including cash flow sensitivity analysis, to estimate the expected impact of changes in interest rates on our future cash flows.
+Added: Our risk management control systems involve the use of analytical techniques, including cash flow sensitivity analysis, to estimate the expected impact of changes in interest rates on our future cash flows.
We may use derivative financial instruments to hedge exposures to changes in interest rates.
5 unchanged sentences
The credit risk associated with derivative instruments is managed by entering into transactions with a variety of highly-rated counterparties.
−Removed: As of December 31, 2021, we had $550.0 million of outstanding variable-rate indebtedness which bears interest at a rate equal to LIBOR plus credit spreads ranging from 105 basis points to 125 basis points.
+Added: As of December 31, 2022, we had $425.0 million outstanding variable-rate indebtedness which bears interest at a rate equal to the Secured Overnight Financing Rate ("SOFR") plus credit spreads and reference rate adjustments ranging from 114 basis points to 129 basis points.
We have interest rate swap agreements on $300.0 million of our variable-rate indebtedness, which effectively convert the base rate on the indebtedness from variable to fixed.
14 unchanged sentences
(1) Weighted average interest rates include the impact of our interest rate swap agreements and are calculated based on the total debt balances as of the end of each year, assuming the repayment of debt on its scheduled maturity date.
−Removed: (2) The interest rates on our variable rate Unsecured Credit Facility and $300M Term Loan are based on credit rating grids.
+Added: (2) The interest rates on our variable rate Unsecured Credit Facility are based on credit rating grids.
The credit rating grids and all-in-rates on outstanding variable rate debt as of December 31, 2022 are as follows:
Credit Spread Grid
−Removed: As of December 31, 2021 LIBOR Rate Loans Base Rate Loans
−Removed: Variable Rate Debt LIBOR Rate Credit Spread All-in-Rate Credit Spread Credit Spread
−Removed: Unsecured Credit Facility - Revolving Facility (1)
+Added: As of December 31, 2022 SOFR Rate Loans Base Rate Loans
+Added: Variable Rate Debt SOFR Rate Reference Rate Adjustment Credit Spread (1)
+Added: All-in-Rate Credit Spread Credit Spread
+Added: Revolving Facility (2)
4.30% 0.10% 1.04% 5.44% 0.83% – 1.50% 0.00% – 0.40%
−Removed: $300 Million Term Loan 0.10% 1.25% 1.35% 0.85% – 1.65% 0.00% – 0.65%
−Removed: 2022 Notes 0.13% 1.05% 1.18% N/A N/A
+Added: Term Loan Facility (3)
+Added: 4.22% 0.10% 1.09% 5.41% 0.90% – 1.70% 0.00% – 0.60%
+Added: (1) Our Revolving Facility and Term Loan Facility include a sustainability metric incentive which can reduce the applicable credit spread by up to two basis points.
+Added: As of December 31, 2022, we qualified for a one basis point reduction to the applicable credit spread, which is included in the credit spreads presented above.
(2) Our Revolving Facility is further subject to a facility fee ranging from 0.13% to 0.30%, which is excluded from the all-in-rate presented above.
+Added: (3) Our Term Loan Facility is further subject to a ticking fee on the additional $200.0 million delayed draw of 0.25%, which is excluded from the all-in-rate presented above.
(3) We have in place four interest rate swap agreements that convert the variable interest rate on one variable rate debt instrument to a fixed rate.
1 unchanged sentence
As of December 31, 2022
−Removed: Variable Rate Debt Amount Weighted Average Fixed LIBOR Rate Credit Spread Swapped All-in-Rate
+Added: Variable Rate Debt Amount Weighted Average Fixed SOFR Rate Credit Spread Reference Rate Adjustment Swapped All-in-Rate
$300 Million Term Loan $ 300,000 2.59% 1.09% 0.10% 3.78%
3 unchanged sentences
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.