3 unchanged sentences
We are exposed to market risks related to fluctuations in interest rates on amounts borrowed under the Credit Facility.
−Removed: As of March 31, 2022, we had $288.7 million outstanding under our Term Loan.
+Added: As of June 30, 2022, we had $268.7 million outstanding under our Term Loan.
Borrowings under the Term Loan Facility bear interest at a rate per annum equal to LIBOR with a floor of 0.50% for an interest period of one, three or six months as selected by Digi, reset at the end of the selected interest period (or a replacement benchmark rate if LIBOR is no longer available) plus 5.00% or a base rate plus 4.00%.
2 unchanged sentences
The applicable margin for loans under the Revolving Credit Facility is in a range of 4.00-3.75% for LIBOR loans and 3.00 to 2.75% for base rate loans, depending on Digi’s consolidated leverage ratio.
−Removed: Based on the balance sheet position for the Revolving Loan at March 31, 2022, the annualized effect of a 25 basis point change in interest rates would increase or decrease our interest expense by $0.7 million.
+Added: Based on the balance sheet position for the Revolving Loan at June 30, 2022, the annualized effect of a 25 basis point change in interest rates would increase or decrease our interest expense by $0.7 million.
For additional information, see Note 7 to our condensed consolidated financial statements.
For our Credit Facility, interest rate changes generally do not affect the fair value of the debt instruments, but do impact future earnings and cash flows, assuming other factors are held constant.
+Added: If interest rates remain elevated, we will continue to see interest expenses that are higher than historical amounts.
FOREIGN CURRENCY RISK
6 unchanged sentences
A 10% change in the average exchange rate for the Euro, British Pound, Japanese Yen and Canadian Dollar to the U.S.
−Removed: Dollar during the first six months of fiscal 2022 would have resulted in a 0.8% increase or decrease in stockholders' equity due to foreign currency translation.
+Added: Dollar during the first nine months of fiscal 2022 would have resulted in a 0.6% increase or decrease in stockholders' equity due to foreign currency translation.
We have exposure to credit risk related to our accounts receivable portfolio.
1 unchanged sentence
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.