11 unchanged sentences
In general, we seek to match the interest rate characteristics of our investments with the interest rate characteristics of any related financing obligations such as repurchase agreements, bank credit facilities, term loans, revolving facilities and securitizations.
−Removed: As of September 30, 2022, we had an aggregate of $3.4 billion of variable rate debt, excluding any debt subject to interest rate swap agreements and interest rate cap agreements, and therefore, we are exposed to interest rate changes in LIBOR and SOFR.
−Removed: As of September 30, 2022, an increase or decrease of 50 basis points in interest rates would result in an increase or decrease in interest expense of $17.0 million per year.
−Removed: As of September 30, 2022, we had two interest rate cap agreements outstanding, which had maturity dates ranging from July 2023 through October 2023, with an aggregate notional amount of $712.0 million and an aggregate fair value of the net derivative asset of $4.7 million.
+Added: As of March 31, 2023, we had an aggregate of $3.2 billion of variable rate debt, excluding any debt subject to interest rate swap agreements and interest rate cap agreements, and therefore, we are exposed to interest rate changes in LIBOR and SOFR.
+Added: As of March 31, 2023, an increase or decrease of 50 basis points in interest rates would result in an increase or decrease in interest expense of $15.9 million per year.
+Added: As of March 31, 2023, we had two interest rate cap agreements outstanding, which had maturity dates ranging from July 2023 through October 2023, with an aggregate notional amount of $712.0 million and an aggregate fair value of the net derivative asset of $3.1 million.
The fair value of these interest rate cap agreements is dependent upon existing market interest rates and spreads.
−Removed: As of September 30, 2022, an increase of 50 basis points in interest rates would result in a change of $2.4 million to the fair value of the net derivative asset, resulting in a net derivative asset of $7.1 million.
−Removed: A decrease of 50 basis points in interest rates would result in a $1.9 million change to the fair value of the net derivative asset, resulting in a net derivative asset of $2.8 million.
−Removed: As the information presented above includes only those exposures that existed as of September 30, 2022, it does not consider exposures or positions arising after that date.
+Added: As of March 31, 2023, an increase of 50 basis points in interest rates would result in a change of $944,000 to the fair value of the net derivative asset, resulting in a net derivative asset of $4.0 million.
+Added: A decrease of 50 basis points in interest rates would result in a $914,000 change to the fair value of the net derivative asset, resulting in a net derivative asset of $2.2 million.
+Added: As the information presented above includes only those exposures that existed as of March 31, 2023, it does not consider exposures or positions arising after that date.
The information presented herein has limited predictive value.
1 unchanged sentence
These amounts were determined by considering the impact of hypothetical interest rate changes on our borrowing costs and assume no other changes in our capital structure.
−Removed: In July 2017, the Financial Conduct Authority (“FCA”) that regulates LIBOR announced its intent to stop compelling banks to submit rates for the calculation of LIBOR after 2021.
−Removed: As a result, the Federal Reserve Board and the Federal Reserve Bank of New York organized the Alternative Reference Rates Committee which identified the SOFR as its preferred alternative to U.S.
+Added: In July 2017, the Financial Conduct Authority (“FCA”) that regulates LIBOR announced it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021.
+Added: As a result, the Federal Reserve Board and the Federal Reserve Bank of New York organized the Alternative Reference Rates Committee which identified SOFR as its preferred alternative to U.S.
dollar LIBOR in derivatives and other financial contracts.
−Removed: On December 31, 2021, the FCA ceased publishing one week
−Removed: and two-month LIBOR, and the FCA intends to cease publishing all remaining LIBOR after June 30, 2023.
+Added: On December 31, 2021, the FCA ceased publishing one week and two-month LIBOR, and the FCA intends to cease publishing all remaining LIBOR after June 30, 2023.
This announcement has several implications, including setting the spread that may be used to automatically convert contracts from LIBOR to SOFR.
3 unchanged sentences
In addition, uncertainty about the extent and manner of future changes may result in interest rates and/or payments that are higher or lower than if LIBOR were to remain available in its current form.
−Removed: As of September 30, 2022, we have interest rate cap agreements maturing on various dates from July 2023 through October 2023, as further discussed above, that are indexed to LIBOR.
+Added: We have an interest rate cap agreement maturing in July 2023, as further discussed above, that is indexed to LIBOR.
As such, we are monitoring and evaluating the related risks, which include interest on loans or amounts received and paid on derivative instruments.
2 unchanged sentences
For some instruments, the method of transitioning to an alternative reference rate may be challenging, especially if we cannot agree with the respective counterparty about how to make the transition.
+Added: In addition, we
+Added: have certain note on note financing and repurchase facilities as of March 31, 2023 that are in the process of being transitioned from LIBOR to SOFR.
If a contract is not transitioned to an alternative rate and LIBOR is discontinued, the impact on our contracts is likely to vary by contract.
21 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.