3 unchanged sentences
Our interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flows and to lower our overall borrowing costs.
−Removed: As of December 31, 2019 , our debt included outstanding variable-rate term loans of $400.0 million, of which $300.0 million has been swapped to a fixed rate.
+Added: As of December 31, 2020, our debt included outstanding variable-rate term loans of $400.0 million, of which $300.0 million has been swapped to a fixed rate and a variable-rate draw on our revolving credit facility of $50.0 million.
If market rates of interest on all variable rate debt as of December 31, 2020, permanently increased and decreased by 1%, the annual increase and decrease in interest expense on the variable-rate debt and future earnings and cash flows would be $1.5 million.
13 unchanged sentences
Market risk is the adverse effect on the value of a financial instrument resulting from a change in interest rates.
−Removed: In July 2017, the Financial Conduct Authority ("FCA"), which regulates LIBOR, announced that it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021.
+Added: In July 2017, the Financial Conduct Authority ("FCA"), which regulates LIBOR, announced that it intended to stop compelling banks to submit rates for the calculation of LIBOR after 2021.
The Alternative Reference Rates Committee ("ARRC") has proposed that the Secured Overnight Financing Rate ("SOFR") is the rate that best represents the alternative to USD-LIBOR for use in derivatives and other financial contracts that are currently indexed to USD-LIBOR.
−Removed: The ARRC has proposed a paced market transition plan to SOFR from USD-LIBOR, and organizations are currently working on industry wide and company specific transition plans as they relate to derivatives and cash markets exposed to USD-LIBOR.
−Removed: The Company is not able to predict when LIBOR will cease to be available or when there will be sufficient liquidity in the SOFR markets.
+Added: In November 2020, ICE Benchmark Administration (IBA), the authorized and regulated administrator of LIBOR, announced it will consult on its intention to cease the publication of the one week and two month USD-LIBOR settings immediately following the LIBOR publication on December 31, 2021, and the remaining USD-LIBOR settings immediately following the LIBOR publication on June 30, 2023.
+Added: After the feedback period has closed, IBA intends to share the results of the consultation with the FCA and to publish a feedback statement summarizing responses from the consultation shortly thereafter.
+Added: In November 2020, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the FDIC (collectively, the Agencies) issued a statement to encourage banks to stop entering into new contracts that use USD-LIBOR as the reference rate as soon as practicable, and in any event by December 31, 2021.
+Added: The Agencies indicated an extension of the IBA publication of certain USD-LIBOR tenors until June 30, 2023 would allow most legacy USD-LIBOR contracts to mature before LIBOR experiences disruptions.
+Added: We are not able to predict when LIBOR will cease to be available or when there will be sufficient liquidity in the SOFR markets.
Any changes adopted by FCA or other governing bodies in the method used for determining LIBOR may result in a sudden or prolonged increase or decrease in reported LIBOR.
If that were to occur, our interest costs could change.
+Added: Our unsecured revolving line of credit, term loan, and interest rate swaps are indexed to USD-LIBOR.
+Added: However, as our amended and restated line of credit and term loan agreements and interest rate swap agreements have provisions that allow for a transition to a new alternative rate, we believe that the transition from USD-LIBOR to SOFR will not have a material impact on our consolidated financial statements.
The following table summarizes the Company's four effective interest rate swaps as of December 31, 2020:
−Removed: Variable Rate Debt Swapped to Fixed Rate Debt
−Removed: Termination Date
−Removed: InvenTrust Pays Fixed Rate of
−Removed: December 31, 2019
−Removed: Fair Value as of
−Removed: December 31, 2019
−Removed: December 31, 2018
−Removed: 5 year - fixed portion
−Removed: 1-Month LIBOR
−Removed: 5 year - fixed portion
−Removed: 1-Month LIBOR
−Removed: 5.5 year - fixed portion
−Removed: 1-Month LIBOR
−Removed: 5.5 year - fixed portion
−Removed: 1-Month LIBOR
+Added: Interest Rate Swap Effective Date Termination
+Added: Date Bank Pays
+Added: Variable Rate of InvenTrust Pays
+Added: Fixed Rate of Notional
+Added: Amount Fair Value as of December 31,
+Added: 5 year, fixed portion Dec 2, 2019 Dec 21, 2023 1-Month LIBOR 1.4795% $ 100,000 $ (3,856) $ 341
+Added: 5 year, fixed portion Dec 2, 2019 Dec 21, 2023 1-Month LIBOR 1.4795% 100,000 (3,856) 199
+Added: 5.5 year, fixed portion Dec 2, 2019 Jun 21, 2024 1-Month LIBOR 1.4915% 50,000 (2,217) 342
+Added: 5.5 year, fixed portion Dec 2, 2019 Jun 21, 2024 1-Month LIBOR 1.4990% 50,000 (2,231) 175
Total fixed of unsecured term loans $ 300,000 $ (12,160) $ 1,057
−Removed: The gains or losses resulting from marking-to-market our derivatives at the end of each reporting period are recognized as an increase or decrease in other comprehensive income on our consolidated statements of operations and comprehensive income.
+Added: The gains or losses resulting from marking-to-market our derivatives at the end of each reporting period are recognized as an increase or decrease in other comprehensive (loss) income on our consolidated statements of operations and comprehensive (loss) income.
Consolidated Financial Statements and Supplementary Data
3 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.