3 unchanged sentences
We use interest rate derivative instruments to manage exposure to interest rate changes.
−Removed: As of December 31, 2020 and December 31, 2019, if market rates on our outstanding borrowings under the BAML Revolver and the floating rate portion of the JPM Term Loan increased by 10% at maturity, or approximately 13 and 31 basis points, respectively, over the current variable rate, the increase in interest expense would decrease future earnings and cash flows by approximately $5,000 and $153,000 annually, respectively.
−Removed: Based upon our credit rating, the interest rate on the BAML Revolver as of December 31, 2020 was LIBOR plus 120 basis points, or 1.34% per annum.
−Removed: On December 24, 2020, we repaid the $50 million portion of the JPM Term Loan that was at a floating rate.
−Removed: Based upon our credit rating, the interest rate on the $50 million portion of the JPM Term Loan that was not subject to interest rate swap transactions as of December 31, 2019 was the LIBOR-based rate plus 125 basis points, or 2.96% per annum.
−Removed: We do not believe that the interest rate risk on the BAML Revolver is material as of December 31, 2020.
−Removed: 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.
−Removed: On July 22, 2016, the Company fixed the interest rate for the period beginning on September 27, 2017 and ending on September 27, 2021 on the BAML Term Loan with multiple interest rate swap agreements (the “2017 Interest Rate Swap”).
+Added: As of December 31, 2021 and December 31, 2020, if market rates on our outstanding borrowings under the Former BofA Revolver and the BofA Term Loan subject to a floating rate increased by 10% at maturity, or approximately 19 and 13 basis points, respectively, over the current variable rate, the increase in interest expense would decrease future earnings and cash flows by approximately $0.2 million and $5,000 annually, respectively.
+Added: Based upon our credit rating, the interest rate on the Former BofA Revolver as of December 31, 2021 was LIBOR plus 155 basis points, or 1.65% per annum.
+Added: Based upon our credit rating, the interest rate on the BofA Term Loan as of December 31, 2021 was LIBOR plus 175 basis points, or 1.85% per annum.
+Added: No amounts were drawn on the Former BofA Revolver and $110 million was outstanding on the BofA Term Loan as of December 31, 2021.
+Added: We do not believe that the interest rate risk on the Former BofA Revolver and the BofA Term Loan are material as of December 31, 2021.
+Added: Although the interest rates on the BMO Term Loan, the BofA Term Loan and the JPM Term Loan are variable, the Company fixed the base LIBOR interest rates on the BMO Term Loan and the BofA 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.
+Added: On July 22, 2016, the Company fixed the interest rate for the period beginning on September 27, 2017 and ended on September 27, 2021 on the BofA Term Loan with multiple interest rate swap agreements (the “2017 Interest Rate Swap”).
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 December 31, 2020, 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 December 31, 2021, 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.
−Removed: We believe that we have mitigated interest rate risk with respect to the BAML Term Loan through the 2017 Interest Rate Swap from September 27, 2017 until September 27, 2021.
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 December 31, 2020.
−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 December 31, 2020 (in thousands):
−Removed: Fair Value (2) at December 31,
+Added: This interest rate swap was our only derivative instrument as of December 31, 2021.
+Added: The table below lists our derivative instruments, which are hedging variable cash flows related to interest on our BofA Term Loan, BMO Term Loan and a portion of the JPM Term Loan as of December 31, 2021 and December 31, 2020 (in thousands):
+Added: Fair Value (2) at
(in thousands)
+Added: December 31, 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.
−Removed: Our BMO Term Loan, BAML Term Loan and JPM Term Loan hedging transactions used derivative instruments that involve certain additional risks such as counterparty credit risk, the enforceability of hedging contracts and the risk that unanticipated and significant changes in interest rates will cause a significant loss of basis in either or
−Removed: both of the contracts.
+Added: Our BMO Term Loan, BofA Term Loan and JPM Term Loan hedging transactions used derivative instruments that involve certain additional risks such as counterparty credit risk, the enforceability of hedging contracts and the risk that unanticipated and significant changes in interest rates will cause a significant loss of basis in either or both of the contracts.
We require our derivatives contracts to be with counterparties that have investment grade ratings.
1 unchanged sentence
However, there can be no assurance that we will be able to adequately protect against the foregoing risks or that we will ultimately realize an economic benefit that exceeds the related amounts incurred in connection with engaging in such hedging strategies.
−Removed: 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 in the consolidated statements of other comprehensive income (loss) and prior to January 1, 2019, the ineffective portion of the derivatives’ fair value was recognized directly into earnings as Other in the consolidated statements of income.
−Removed: The following table presents, as of December 31, 2020, 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 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 in the consolidated statements of other comprehensive income (loss).
+Added: The following table presents, as of December 31, 2021, our contractual variable rate borrowings under our Former BofA Revolver, which we terminated on January 10, 2022, under our BofA 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.
Payment due by period
(in thousands)
−Removed: BAML Revolver
−Removed: JPM Term Loan
−Removed: BAML Term Loan
−Removed: BMO Term Loan Tranche A
+Added: Former BofA Revolver
+Added: BofA Term Loan
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.