QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: Our Notes due 2026 bear interest at a fixed rate of 5.50% per annum until maturity and is the only debt we have outstanding.
+Added: Interest Rate Risk
+Added: Our Notes due 2026 bear interest at a fixed rate of 5.50% per annum until maturity.
Our Revolving Credit Facility bears interest at a variable rate based on the greater of the prime rate and an applicable margin and a stipulated interest rate;
therefore, if interest rates increase, our required payments on any amounts outstanding on our Revolving Credit Facility may also increase.
+Added: Our IIP Life Science Credit Facility bears interest at a variable rate based on the greater of SOFR and an applicable margin and a stipulated interest rate;
+Added: therefore, if interest rates increase our required payments on any amounts outstanding under our IIP Life Science Credit Facility may also increase.
+Added: Our investment in IQHQ Preferred Stock carries a fixed annual dividend rate of 15.0%, consisting of a 10.0% cash dividend and an initial 5.0% PIK dividend.
+Added: As the dividend is fixed, the investment is not directly exposed to changes in prevailing market interest rates.
+Added: However, to the extent the Company funds purchases of IQHQ Preferred Stock with variable-rate debt or other interest-sensitive instruments, rising interest rates may increase its cost of capital, potentially resulting in a negative interest rate spread on this investment.
+Added: Our investment in IQHQ Credit Facility pays a fixed interest rate of 13.5% per year, made up of 12.0% in cash and 1.5% PIK, with interest paid every quarter.
+Added: As the rate is fixed, the interest income is not directly affected by changes in market interest rates.
+Added: However, since the Company partially funded the IQHQ Credit Facility using variable-rate borrowings, rising interest rates may increase the Company’s cost of capital and reduce the overall return on the investment.
Our investments in short-term money market funds, certificates of deposit and short-term investments in obligations of the U.S.
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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.