QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: Our floating rate debt under our 2018 credit facility exposes us to interest rate risk.
+Added: Our floating rate debt under the 2022 credit facility exposes us to interest rate risk.
Interest rate risk results when the maturity or repricing intervals of interest-earning assets and interest-bearing liabilities are different.
A change in the Federal Funds Rate, or the reference rate set by Bank of America, N.A., would affect the rate at which we could borrow funds under the credit facility.
−Removed: The balance outstanding under our credit facility at March 31, 2022 was $298.9 million, of which $183.9 million is subject to rate risk.
−Removed: If market rates were to increase or decrease 100 basis points from the levels at March 31, 2022, interest expense would increase or decrease approximately $1.8 million annually.
+Added: The balance outstanding under our credit facility at June 30, 2022 was $266.0 million, of which $171.0 million is subject to rate risk.
+Added: If market rates were to increase or decrease 100 basis points from the levels at June 30, 2022, interest expense would increase or decrease approximately $1.7 million annually.
We do not engage in trading market risk sensitive instruments.
2 unchanged sentences
These agreements involve the receipt or payment of floating rate amounts in exchange for fixed rate interest payments over the life of the agreements without an exchange of the underlying principal amounts.
−Removed: At March 31, 2022, we had four interest rate swaps with notional values, fixed rates of interest and expiration dates of (i) $20.0 million – 1.770% - May, 2022, (ii) $15.0 million – 2.640% - June, 2023, (iii) $50.0 million – 0.885% - April, 2025, and (iv) $30.0 million – 1.249% - December, 2026, respectively.
+Added: At June 30, 2022, we had three interest rate swaps with notional values, fixed rates of interest and expiration dates of (i) $15.0 million – 2.571% - June, 2023, (ii) $50.0 million – 0.834% - April, 2025, and (iii) $30.0 million – 1.186% - December, 2026, respectively.
Management will continue to evaluate the potential use of interest rate swaps as we deem appropriate under certain operating and market conditions.
6 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.