3 unchanged sentences
The prices of securities held by us may decline in response to certain events, including those directly involving the companies in which we invest;
−Removed: conditions affecting the general economy, including public health emergencies, such as COVID-19;
−Removed: overall market changes;
+Added: conditions affecting the general economy, including the impact of COVID-19;
+Added: overall market changes, including an increase in market volatility due to COVID-19;
legislative reform;
3 unchanged sentences
We are subject to interest rate risk.
−Removed: See “Risk Factors - Risks Related to our Investments - “Changes in interest rates may affect our cost of capital, the value of investments and net investment income.” Interest rate risk is defined as the sensitivity of our current and future earnings to interest rate volatility, variability of spread relationships, the difference in re-pricing internals between our assets and liabilities and the effect that interest rates may have on our cash flows.
+Added: Interest rate risk is defined as the sensitivity of our current and future earnings to interest rate volatility, variability of spread relationships, the difference in re-pricing internals between our assets and liabilities and the effect that interest rates may have on our cash flows.
Changes in the general level of interest rates can affect our net interest income, which is the difference between the interest income earned on interest earning assets and our interest expense incurred in connection with our interest-bearing liabilities.
1 unchanged sentence
Our net investment income is affected by fluctuations in various interest rates including LIBOR and prime rates.
−Removed: Our interest expense will also be affected by changes in the published LIBOR rate in connection with our Credit Facility.
−Removed: See “Risk Factors - Risks Related to our Investments - Changes relating to the LIBOR calculation process may adversely affect the value of the LIBOR-indexed, floating-rate debt securities in our portfolio.” The interest rates on the December 2022 and the October 2024 Notes are fixed for the life of such debt.
+Added: A large portion of our portfolio is comprised of floating rate investments that utilize LIBOR.
+Added: In connection with the COVID-19 pandemic, the U.S.
+Added: Federal Reserve and other central banks have reduced certain interest rates and LIBOR has decreased.
+Added: A prolonged reduction in interest rates will reduce our gross investment income and could result in a decrease in our net investment income if such decreases in LIBOR are not offset by a corresponding increase in the spread over LIBOR that we earn on any portfolio investments or a decrease in the interest rate of our floating interest rate liabilities tied to LIBOR.
+Added: Our interest expenses will also be affected by changes in the published LIBOR rate in connection with our Credit Facility.
+Added: The interest rates on the October 2024 Notes and the January 2026 Notes are fixed for the life of such debt.
Our risk management systems and procedures are designed to identify and analyze our risk, to set appropriate policies and limits and to continually monitor these risks.
2 unchanged sentences
As of March 31, 2021, approximately 95.5% of our debt investment portfolio (at fair value) bore interest at floating rates, of which 100.0% were subject to contractual minimum interest rates.
−Removed: A hypothetical 100 basis point increase in interest rates could increase our net investment income by a maximum of $2.8 million, or $0.15 per share, on an annual basis.
+Added: Based on interest rates at March 31, 2021, a hypothetical 100 basis point increase in interest rates could decrease our net investment income by a maximum of $0.8 million, or $0.04 per share, on an annual basis.
A hypothetical 100 basis point decrease in interest rates could increase our net investment income by a maximum of $0.3 million, or $0.02 per share, on an annual basis.
−Removed: Our Credit Facility bears interest on a per annum basis equal to the applicable LIBOR rate plus 2.50%, subject to certain conditions as outlined in the Credit Agreement.
+Added: Our Credit Facility bears interest on a per annum basis equal to the applicable LIBOR rate plus 2.50%.
We pay unused commitment fees of 0.50% to 1.00% per annum, based on utilization.
7 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.