3 unchanged sentences
We use interest rate derivative instruments to manage exposure to interest rate changes.
−Removed: As of March 31, 2021 and December 31, 2020, if market rates on our outstanding borrowings under the BAML Revolver increased by 10% at maturity, or approximately 13 and 13 basis points, respectively, over the current variable rate, the increase in interest expense would decrease future earnings and cash flows by $36,000 and $5,000 annually, respectively.
−Removed: Based upon our credit rating, the interest rate on the BAML Revolver as of March 31, 2021 was LIBOR plus 120 basis points, or 1.31% per annum.
−Removed: We do not believe that the interest rate risk on the BAML Revolver is material as of March 31, 2021.
+Added: As of June 30, 2021 and December 31, 2020, if market rates on our outstanding borrowings under the BAML Revolver increased by 10% at maturity, or approximately 17 and 13 basis points, respectively, over the current variable rate, the increase in interest expense would decrease future earnings and cash flows by $0 and $5,000 annually, respectively.
+Added: Based upon our credit rating, the interest rate on the BAML Revolver as of June 30, 2021 was LIBOR plus 155 basis points, or 1.65% per annum.
+Added: No amounts were drawn on the BAML Revolver as of June 30, 2021.
+Added: We do not believe that the interest rate risk on the BAML Revolver is material as of June 30, 2021.
Although the interest rates on the BMO Term Loan, the BAML Term Loan and the JPM Term Loan are variable, the Company fixed the base LIBOR interest rates on the BMO Term Loan and the BAML Term Loan, and the LIBOR-based rate on the remaining $100 million portion of the JPM Term Loan, by entering into interest rate swap agreements.
1 unchanged sentence
On March 7, 2019, the Company fixed the interest rate for the period beginning on March 29, 2019 and ending on November 30, 2021 for the notional value of $100 million on the JPM Term Loan with interest rate swap agreements (the “2019 JPM Interest Rate Swap”).
+Added: On June 4, 2021, the Company paid approximately $1.2 million to terminate the 2019 JPM Interest Rate Swap, which was scheduled to mature on November 30, 2021.
On February 20, 2019, the Company fixed the interest rate for the period beginning August 26, 2020 and ending January 31, 2024 on the BMO Term Loan with interest rate swap agreements (the “2019 BMO Interest Rate Swap”).
−Removed: Accordingly, based upon our credit rating, as of March 31, 2021, the interest rate on the BAML Term Loan was 2.47% per annum, the interest rate on the BMO Term Loan was 3.64% per annum, and the interest rate on $100 million of the JPM Term Loan was 3.69% per annum.
+Added: On June 4, 2021, the Company paid approximately $0.6 million to terminate $55 million in Notional Value on the 2019 BMO Interest Rate Swap, which was scheduled to mature on November 30, 2021.
+Added: Accordingly, based upon our credit rating, as of June 30, 2021, the interest rate on the BAML Term Loan was 2.87% per annum and the interest rate on the BMO Term Loan was 4.04% per annum.
The fair value of these interest rate swaps are affected by changes in market interest rates.
1 unchanged sentence
We believe that we have mitigated interest rate risk with respect to the BMO Term Loan through the 2019 BMO Interest Rate Swap until January 31, 2024.
−Removed: We believe that we have mitigated the interest rate risk on the remaining $100 million portion of the JPM Term Loan until November 30, 2021 with the 2019 JPM Interest Rate Swap.
−Removed: These interest rate swaps were our only derivative instruments as of March 31, 2021.
−Removed: The table below lists our derivative instruments, which are hedging variable cash flows related to interest on our BAML Term Loan, BMO Term Loan and a portion of the JPM Term Loan as of March 31, 2021 (in thousands):
−Removed: Fair Value (2) at March 31,
+Added: These interest rate swaps were our only derivative instruments as of June 30, 2021.
+Added: The table below lists our derivative instruments, which are hedging variable cash flows related to interest on our BAML Term Loan, BMO Term Loan and a portion of the JPM Term Loan as of June 30, 2021 (in thousands):
+Added: Fair Value (2) at
(in thousands)
+Added: June 30, 2021
+Added: December 31, 2020
2017 Interest Rate Swap
1 unchanged sentence
2019 BMO Interest Rate Swap (1)
−Removed: 2013 BMO Interest Rate Swap
−Removed: (1) The Notional Value will decrease to $165 million on November 30, 2021.
+Added: (1) The Notional Value was $220 million and decreased to $165 million on June 4, 2021.
(2) Classified within Level 2 of the fair value hierarchy.
4 unchanged sentences
The Company’s derivatives are recorded at fair value in other assets and liabilities in the consolidated balance sheets, the effective portion of the derivatives’ fair value is recorded to other comprehensive income (loss) in the consolidated statements of comprehensive income (loss).
−Removed: The following table presents, as of March 31, 2021, our contractual variable rate borrowings under our BAML Revolver, which matures on January 12, 2022, under our JPM Term Loan, which matures on November 30, 2021, under our BAML Term Loan, which matures on January 12, 2023, under our BMO Term Loan Tranche A, which matures on November 30, 2021, under our BMO Term Loan Tranche B, which matures on January 31, 2024, under our Series A Notes, which mature on December 20, 2024, and under our Series B Notes, which mature on December 20, 2027.
−Removed: Under the BAML Revolver and the JPM Term Loan, we have the right to extend the initial maturity date with two additional six month extensions, or until January 12, 2023 and November 30, 2022, respectively, upon payment of a fee and satisfaction of certain customary conditions.
+Added: The following table presents, as of June 30, 2021, our contractual variable rate borrowings under our BAML Revolver, which matures on January 12, 2022, under our BAML Term Loan, which matures on January 12, 2023, under our BMO Term Loan Tranche B, which matures on January 31, 2024, under our Series A Notes, which mature on December 20, 2024, and under our Series B Notes, which mature on December 20, 2027.
+Added: Under the BAML Revolver, we have the right to extend the initial maturity date with two additional six month extensions, or until January 12, 2023, upon payment of a fee and satisfaction of certain customary conditions.
Payment due by period
1 unchanged sentence
BAML Revolver
−Removed: JPM Term Loan
BAML Term Loan
−Removed: BMO Term Loan Tranche A
BMO Term Loan Tranche B
2 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.