7 unchanged sentences
The primary risk we believe we are exposed to is interest rate risk.
−Removed: Because we borrow money to make investments, our net investment income is dependent upon the difference between the rates at which we borrow funds, such as under the Credit Facility (which is variable), our 2026 Notes and 2028 Notes (which are fixed), and the rates at which we invest those funds.
+Added: Because we borrow money to make investments, our net investment income is dependent upon the difference between the rates at which we borrow funds, such as under the Credit Facility (which is variable), the 5.00% 2026 Notes, 4.875% 2028 Notes and 8.00% 2028 Notes (which are fixed), and the rates at which we invest those funds.
As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.
3 unchanged sentences
We target to have approximately 90% of the loans in our portfolio at variable rates or variable rates with a floor mechanism, and approximately up to 10% at fixed rates.
−Removed: As of March 31, 2023 and 2022, all of our variable-rate loans have rates associated with the current 30-day LIBOR rate and our total debt investment portfolio consisted of the following breakdown based on the principal balance:
+Added: As of March 31, 2024 and 2023, all of our variable-rate loans had rates associated with the current 30-day Term SOFR rate and 30-day LIBOR rate, respectively, and our total debt investment portfolio consisted of the following breakdown based on the principal balance:
As of March 31,
2 unchanged sentences
Total 100.0 % 100.0 %
−Removed: We had $35.2 million of outstanding borrowings under the Credit Facility as of March 31, 2023 and no outstanding borrowings as of March 31, 2022.
−Removed: Our 2026 Notes and 2028 Notes had an outstanding principal balance of $127.9 million and $134.6 million, respectively, as of March 31, 2023 and 2022.
−Removed: Advances under the Credit Facility generally bear interest at 30-day LIBOR, subject to a floor of 0.50%, plus 2.85% per annum until February 29, 2024, with the margin then increasing to 3.10% for the period from February 29, 2024 to February 28, 2025, and increasing further to 3.35% thereafter.
−Removed: The Credit Facility has an unused commitment fee on the daily unused commitment amount of 0.50% per annum if the average unused commitment amount for the period is less than or equal to 50% of the total commitment amount, 0.75% per annum if the average unused commitment amount for the period is greater than 50% but less than or equal to 65% of the total commitment amount, and 1.00% per annum if the average unused commitment amount for the period is greater than 65% of the total commitment amount.
+Added: We had $67.0 million of outstanding borrowings under the Credit Facility as of March 31, 2024 and $35.2 million borrowings as of March 31, 2023.
+Added: As of March 31, 2024, the 5.00% 2026 Notes, 4.875% 2028 Notes and 8.00% 2028 Notes had an outstanding principal balance of $127.9 million, $134.6 million and $74.8 million , respectively.
+Added: As of March 31, 2023 , the 5.00% 2026 Notes and 4.875% 2028 Notes had an outstanding principal balance of $127.9 million and $134.6 million , respectively.
+Added: Advances under the Credit Facility generally bear interest at 30-day Term SOFR, subject to a floor of 0.35%, plus 3.15% per annum until October 30, 2026, with the margin then increasing to 3.40% for the period from October 30, 2026 to October 30, 2027, and increasing further to 3.65% thereafter with a SOFR credit spread adjustment of 10 basis points.
+Added: The Credit Facility has an unused commitment fee on the daily unused commitment amount of 0.50% per annum if the daily unused commitment amount is less than or equal to 50% of the total commitment amount, 0.75% per annum if the daily unused commitment amount is greater than 50% but less than or equal to 65% of the total commitment amount, and 1.00% per annum if the daily unused commitment amount is greater than 65% of the total commitment amount.
To illustrate the potential impact of changes in interest rates, we have performed the following hypothetical analysis, which assumes that our balance sheet and interest rates remain constant as of March 31, 2024 and no further actions are taken to alter our existing interest rate sensitivity.
13 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.