Item 3. Quantitative and Qualitative Disclosures About Market Risk
ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The principal material financial market risk to which we are exposed is interest rate risk.
The table below presents principal, interest and related weighted average interest rates by year of maturity, with respect to debt outstanding, which consists exclusively of the Secured Term Loan on June 30, 2026 (in thousands):
2026 2027 2028 2029 2030 Thereafter Total Fair Value
Secured variable rate debt
Principal $ 251,042 $ — $ — $ — $ — $ — $ 251,042 $ 251,042
Variable interest rate on debt maturities 6.4 % 6.4 %
The Company has purchased an interest rate cap that effectively caps term SOFR with respect to the Secured Term Loan at 5.00% per annum.
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