QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: Interest Rate Risk.
−Removed: We are exposed to risks associated with market changes in interest rates through our borrowing arrangements and investments.
−Removed: In particular, our Credit Facility exposes us to variability in interest payments due to changes in LIBOR interest rates.
+Added: Interest Rate Risk — We are exposed to risks associated with market changes in interest rates through our borrowing arrangements and investments.
+Added: In particular, our Revolving Credit Facility exposes us to variability in interest payments due to changes in SOFR interest rates.
We manage our exposure to this market risk by monitoring available financing alternatives.
4 unchanged sentences
These prepayment rights may afford us opportunities to mitigate the risk of refinancing our debts at maturity at higher rates by refinancing prior to maturity.
−Removed: As of December 31, 2021, there was no outstanding debt under our Credit Facility.
+Added: On April 8, 2022, we entered into the Amended Credit Agreement, with a revolving line of credit of up to $600.0 million in aggregate principal amount.
+Added: The Amended Credit Agreement amended the reference for borrowings under the Revolving Credit Facility rate from LIBOR to SOFR.
+Added: We have no outstanding borrowings under our Amended Credit Facility as of December 31, 2022 and January 30, 2023.
We have outstanding indebtedness under mortgage loans insured with HUD and two promissory notes to third parties of $156.3 million, all of which are at fixed interest rates.
1 unchanged sentence
Treasury bill related investments.
−Removed: In addition, as of December 31, 2021, we held debt security investments of approximately $50.3 million which were split between AA, A, and BBB rated securities.
−Removed: We believe our debt security investments that were in an unrealized loss position as of December 31, 2021 were not other-than-temporarily impaired, nor has any event occurred subsequent to that date that would indicate any other-than-temporary impairment.
+Added: In addition, as of December 31, 2022, we held investments of approximately $83.1 million.
+Added: We believe our investments that were in an unrealized loss position as of December 31, 2022 do not require an allowance for expected credit losses, nor has any event occurred subsequent to that date that would indicate so.
Our market risk exposure is interest income sensitivity, which is affected by changes in the general level of U.S.
5 unchanged sentences
If we diversify our investment portfolio into securities and other investment alternatives, we may face increased risk and exposures as a result of interest risk and the securities markets in general.
−Removed: LIBOR Phase Out — LIBOR is expected to be phased out.
−Removed: Currently, our borrowings under our Credit Facility provide us flexibility to choose floating rates, one of which is based on LIBOR.
−Removed: We currently expect that the determination of interest under our credit agreement would be revised as provided under the agreement or amended as necessary to provide for an interest rate that will attempt to approximate the existing interest rate as calculated in accordance with LIBOR for similar types of loans.
−Removed: The market transition from LIBOR to an alternative reference rate is expected to be complicated, including the development of term rates and credit adjustments to accommodate differences between LIBOR and the alternatives.
−Removed: During the transition period, LIBOR may exhibit increased volatility or become less representative.
−Removed: It is expected that U.S.-dollar LIBOR will be replaced with the Secured Overnight Financing Rate (SOFR) or the Bloomberg Short-Term Bank Yield Index (BSBY).
−Removed: The use of an alternative reference rate such as SOFR or BSBY (and the transition to that rate) will likely create uncertainty in our interest rate associated with our variable interest debt.
−Removed: Due to these uncertainties, we cannot be sure that our determination of interest under our agreement would materially approximate the current calculation in accordance with LIBOR.
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.