1 unchanged sentence
Our operations are interest-rate sensitive.
−Removed: As overall housing demand is adversely affected by increases in interest rates, a significant increase in interest rates may
−Removed: negatively affect the ability of homebuyers to secure adequate financing.
+Added: As overall housing demand is adversely affected by increases in interest rates, a significant increase in interest rates may negatively affect the ability of homebuyers to secure adequate financing.
Higher interest rates could adversely affect our revenues, gross margins and net income.
−Removed: We do not enter into, nor do we intend to enter into in the future, derivative
−Removed: financial instruments for trading or speculative purposes to hedge against interest rate fluctuations.
+Added: We do not enter into, nor do we intend to enter into in the future, derivative financial instruments for trading or speculative purposes to hedge against interest rate fluctuations.
Quantitative and Qualitative Disclosures About Interest Rate Risk
Market risk is the risk of loss arising from adverse changes in market prices and interest rates.
−Removed: Our market risk arises from interest rate risk inherent in our financial
−Removed: instruments and debt obligations.
+Added: Our market risk arises from interest rate risk inherent in our financial instruments and debt obligations.
Interest rate risk results from the possibility that changes in interest rates will cause unfavorable changes in net income or in the value of interest rate-sensitive assets, liabilities and commitments.
−Removed: interest rates tend to increase demand for mortgage loans for home purchasers, while higher interest rates make it more difficult for potential borrowers to purchase residential properties and to qualify for mortgage loans.
−Removed: We have no market rate
−Removed: sensitive instruments held for speculative or trading purposes.
−Removed: The Credit Agreement provides for interest rate options on advances at rates equal to either:
−Removed: (a) in the case of base rate advances, the highest of (1) Bank of America, N.A.’s announced “prime
−Removed: rate”, (2) the federal funds rate plus 0.5%, and (3) the one-month LIBOR plus 1.0%, in each case not to be less than 1.5%;
−Removed: or (b) in the case of Eurodollar rate advances, the reserve adjusted LIBOR, not to be less than 0.5%.
−Removed: Borrowings under
−Removed: the Credit Agreement bear interest at the interest rate option plus an applicable margin ranging from (i) 2.00% to 2.75% per annum for base rate advances and (ii) 3.00% to 3.75% per annum for Eurodollar rate advances.
−Removed: The applicable margin will
−Removed: vary depending on the Company’s debt to capitalization ratio.
+Added: Lower interest rates tend to increase demand for mortgage loans for home purchasers, while higher interest rates make it more difficult for potential borrowers to purchase residential properties and to qualify for mortgage loans.
+Added: We have no market rate sensitive instruments held for speculative or trading purposes.
+Added: The Amended and Restated Credit Agreement provides for loans to bear interest, at the Company’s option, at (1) a “Base Rate”, which means for any day a fluctuating rate per annum equal to credit spreads of 1.5% to 2.6%, which are determined based on the Company’s debt to capitalization ratio, plus the highest of (a) the Federal Funds Rate plus 0.5%, (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate,” (c) Term SOFR plus 1.0% and (d) 1.0%, or (2) a “Term SOFR/Letter of Credit Rate”, which means for any day a fluctuating rate per annum equal to credit spreads of 2.5% to 3.6%, which are determined based on the Company’s debt to capitalization ratio, plus the adjusted term SOFR rate (based on one, three or six-month interest periods).
Interest on base rate advances borrowed under the Credit Agreement is payable in arrears on a monthly basis.
−Removed: Interest on each Eurodollar rate advance borrowed under the
−Removed: Credit Agreement is payable in arrears at the end of the interest period applicable to such advance, or, if less than such interest period, three months after the beginning of such interest period.
−Removed: The Company pays the lenders a commitment fee
−Removed: on the amount of the unused commitments on a quarterly basis at a rate per annum that will vary from 0.20% to 0.30% depending on the Company’s net debt to net capitalization ratio.
+Added: Interest on each Eurodollar rate advance borrowed under the Credit Agreement is payable in arrears at the end of the interest period applicable to such advance, or, if less than such interest period, three months after the beginning of such interest period.
+Added: The Company pays the lenders a commitment fee on the amount of the unused commitments on a quarterly basis at a rate per annum that will vary from 0.2% to 0.3% depending on the Company’s net debt to net capitalization ratio.
Outstanding borrowings under the Credit Agreement are subject to, among other things, a borrowing base.
−Removed: The borrowing base includes, among other things, (a) 90% of the net
−Removed: book value of presold housing units, (b) 85% of the net book value of model housing units, (c) 85% of the net book value of speculative housing units and (d) 70% of the net book value of finished lots, in each case subject to certain exceptions
−Removed: and limitations set forth in the Credit Agreement.
+Added: The borrowing base includes, among other things, (a) 90% of the net book value of presold housing units, (b) 85% of the net book value of model housing units, (c) 85% of the net book value of speculative housing units and (d) 70% of the net book value of finished lots, in each case subject to certain exceptions and limitations set forth in the Credit Agreement.
Our mortgage banking joint venture, Jet LLC, is exposed to interest rate risk as it relates to its lending activities.
−Removed: Jet LLC underwrites and originates mortgage loans,
−Removed: which are sold through either optional or mandatory forward delivery contracts into the secondary markets.
+Added: Jet LLC underwrites and originates mortgage loans, which are sold through either optional or mandatory forward delivery contracts into the secondary markets.
All of the mortgage banking segment’s loan portfolio is held for sale and subject to forward sale commitments.
−Removed: Jet LLC also sells all of
−Removed: its mortgages held for sale on a servicing released basis.
+Added: Jet LLC also sells all of its mortgages held for sale on a servicing released basis.
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.