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, 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.
−Removed: 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.
+Added: As of December 31, 2021, 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: If market rates of interest on all variable-rate debt as of December 31, 2021, permanently increased or decreased by 1%, the annual increase or decrease in interest expense on the variable-rate debt and decrease or increase in future earnings and cash flows would be approximately $1.3 million.
With regard to our variable-rate financing, we assess interest rate cash flow risk by continually identifying and monitoring changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating hedging opportunities.
12 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 intended to stop compelling banks to submit rates for the calculation of LIBOR after 2021.
+Added: 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 June 2023.
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: 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.
−Removed: 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.
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.
4 unchanged sentences
Our unsecured revolving line of credit, term loan, and interest rate swaps are indexed to USD-LIBOR.
−Removed: 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.
+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 or other replacement rate 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, 2021:
Interest Rate Swap Effective Date Termination
−Removed: Date Bank Pays
+Added: Date InvenTrust Receives
Variable Rate of InvenTrust Pays
5 unchanged sentences
5.5 year, fixed portion Dec 2, 2019 Jun 21, 2024 1-Month LIBOR 1.4990% 50,000 (684) (2,231)
−Removed: 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 (loss) income on our consolidated statements of operations and comprehensive (loss) income.
+Added: $ 300,000 $ (3,966) $ (12,160)
+Added: The following table summarizes the Company's four forward interest rate swaps as of December 31, 2021:
+Added: Interest Rate Swap Effective Date Termination
+Added: Date InvenTrust Receives
+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 21, 2023 Sep 22, 2026 1-Month LIBOR 1.5763% $ 100,000 $ (230) $ —
+Added: 5 year, fixed portion Dec 21, 2023 Sep 22, 2026 1-Month LIBOR 1.5730% 100,000 (212) —
+Added: 5.5 year, fixed portion Jun 21, 2024 Mar 22, 2027 1-Month LIBOR 1.5770% 50,000 (87) —
+Added: 5.5 year, fixed portion Jun 21, 2024 Mar 22, 2027 1-Month LIBOR 1.5960% 50,000 (118) —
+Added: $ 300,000 $ (647) $ —
+Added: The following table summarizes IAGM's effective interest rate swaps as of December 31, 2021:
+Added: Interest Rate Swap Effective Date Termination Date IAGM Receives
+Added: Variable Rate of IAGM Pays
+Added: Fixed Rate of Notional
+Added: Amount Fair Value as of December 31,
+Added: Secured term loan 4/1/2020 11/2/2023 1-Month LIBOR 0.4290% $ 45,000 $ 310 $ (327)
+Added: Secured term loan 4/1/2020 11/2/2023 1-Month LIBOR 0.4060% 30,000 $ 220 $ (198)
+Added: $ 75,000 $ 530 $ (525)
+Added: The gains or losses resulting from marking-to-market our derivatives each reporting period are recognized as an increase or decrease in other comprehensive income (loss) on our consolidated statements of operations and comprehensive income (loss).
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.