3 unchanged sentences
We use interest rate derivative instruments to manage exposure to interest rate changes.
−Removed: As of September 30, 2021 and December 31, 2020, if market rates on our outstanding borrowings under the BAML Revolver and the BAML Term Loan not subject to an interest rate swap increased by 10% at maturity, or approximately 18 and 13 basis points, respectively, over the current variable rate, the increase in interest expense would decrease future earnings and cash flows by $0.6 million and $5,000 annually, respectively.
−Removed: Based upon our credit rating, the interest rate on the BAML Revolver as of September 30, 2021 had amounts been outstanding would have been LIBOR plus 155 basis points, or 1.63% per annum.
−Removed: Based upon our credit rating, the interest rate on the BAML Term Loan as of September 30, 2021 was LIBOR plus 175 basis points, or 1.83% per annum.
−Removed: No amounts were drawn on the BAML Revolver and $310 million was outstanding on the BAML Term Loan as of September 30, 2021.
−Removed: We do not believe that the interest rate risk on the BAML Revolver and the BAML Term Loan are material as of September 30, 2021.
−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 ended on September 27, 2021 on the BAML Term Loan with multiple interest rate swap agreements (the “2017 Interest Rate Swap”).
−Removed: 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: As of March 31, 2022 and December 31, 2021, if market rates on our outstanding borrowings under the BofA Revolver and the BofA Term Loan subject to a floating rate increased by 10% at maturity, or approximately 21 and 22 basis points, respectively, over the current variable rate, the increase in interest expense would decrease future earnings and cash flows by approximately $0.1 million and $0.2 million annually, respectively.
+Added: Based upon our credit rating, the interest rate on the BofA Revolver as of March 31, 2022 was SOFR plus an adjustment of 0.11448% plus 165 basis points, or 2.07% per annum.
+Added: Based upon our credit rating, the interest rate on the BofA Term Loan as of March 31, 2022 was LIBOR plus 175 basis points, or 2.20% per annum.
+Added: There was $40 million drawn on the BofA Revolver and $110 million was outstanding on the BofA Term Loan as of March 31, 2022.
+Added: We do not believe that the interest rate risk on the BofA Revolver and the BofA Term Loan are material as of March 31, 2022.
+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”).
+Added: On March 7, 2019, the Company fixed the interest rate for the period beginning on March 29, 2019 and ended 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”).
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.
1 unchanged sentence
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.
−Removed: Accordingly, based upon our credit rating, as of September 30, 2021, the interest rate on the BMO Term Loan was 4.04% per annum.
+Added: Accordingly, based upon our credit rating, as of March 31, 2022, 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.
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: This interest rate swap was our only derivative instrument as of September 30, 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 September 30, 2021 and December 31, 2020 (in thousands):
+Added: This interest rate swap was our only derivative instrument as of March 31, 2022.
+Added: The table below lists our derivative instruments, which are hedging variable cash flows related to interest on our BMO Term Loan as of March 31, 2022 and December 31, 2021 (in thousands):
Fair Value (2) at
(in thousands)
−Removed: September 30, 2021
+Added: March 31, 2022
December 31, 2021
−Removed: 2017 Interest Rate Swap
−Removed: 2019 JPM Interest Rate Swap
2019 BMO Interest Rate Swap (1)
−Removed: (1) The Notional Value was $220 million and decreased to $165 million on June 4, 2021.
+Added: (1) The Notional Value 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 both of the contracts.
+Added: Our BMO Term Loan hedging transaction uses 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 the contract.
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 (loss) in the consolidated statements of comprehensive income (loss).
−Removed: The following table presents, as of September 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.
−Removed: 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.
+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 March 31, 2022, our contractual variable rate borrowings under our BofA Revolver, which matures on January 12, 2024, 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: BAML Term Loan
+Added: 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.