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 the impact of COVID-19;
+Added: conditions affecting the general economy, including the impact of COVID-19 and any new variants of COVID-19;
overall market changes, including an increase in market volatility due to COVID-19;
1 unchanged sentence
local, regional, national or global political, social or economic instability;
−Removed: and interest rate fluctuations.
+Added: and interest rate volatility, including the decommissioning of LIBOR.
Interest Rate Risk
3 unchanged sentences
Changes in interest rates can also affect, among other things, our ability to acquire and originate loans and securities and the value of our investment portfolio.
−Removed: Our net investment income is affected by fluctuations in various interest rates including LIBOR and prime rates.
−Removed: A large portion of our portfolio is comprised of floating rate investments that utilize LIBOR.
+Added: Our net investment income is affected by fluctuations in various interest rates, including the decommissioning of LIBOR and changes in alternate rates and prime rates, to the extent our debt investments include floating interest rates.
+Added: A large portion of our portfolio is comprised of floating rate investments that utilize LIBOR or an alternative rate.
In connection with the COVID-19 pandemic, the U.S.
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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: Conversely, in a rising interest rate environment, such difference could potentially increase thereby increasing our gross investment income as indicated below.
+Added: In March 2022, the Federal Reserve raised interest rates by 0.25%, the first increase since December 2018, and, most recently, in May 2022, raised interest rates by 0.50% and indicated that it would raise rates at each of the remaining meetings in 2022.
+Added: See “Risk Factors — Changes in interest rates may affect our cost of capital the value of investments and net investment income,” “Risk Factors — The interest rates of our loans to our portfolio companies, any LIBOR-linked securities, and other financial obligations that extend beyond 2021 might be subject to change based on recent regulatory changes, including the decommissioning of LIBOR” and “Risk Factors — The interest rates of our loans to our portfolio companies, any LIBOR-linked securities, and other financial obligations that extend beyond 2021 might be subject to change based on recent regulatory changes, including the decommissioning of LIBOR” for more information.
Our interest expenses will also be affected by changes in the published LIBOR rate in connection with our Credit Facility.
−Removed: The interest rates on the October 2024 Notes and the January 2026 Notes are fixed for the life of such debt.
+Added: The interest rates on the October 2026 Notes, the January 2026 Notes and SBA Debentures 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.
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As of March 31, 2022, approximately 97.3% 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: 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.
+Added: Based on interest rates at March 31, 2022, a hypothetical 100 basis point increase in interest rates could increase our net investment income by a maximum of $5.2 million, or $0.21 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 $2.5 million, or $0.10 per share, on an annual basis.
9 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.