Quantitative and Qualitative Disclosures About Market Risk
+Added: Interest Rate Risk
+Added: Our interest rate risk results primarily from our variable rate indebtedness under our ABL Facility, which is influenced by movements in short-term rates.
+Added: Borrowings under the ABL Facility bear interest through maturity at a variable rate based upon, at our option, an annual rate of either a base rate (“Base Rate”), an Adjusted Term SOFR ("Adjusted Term SOFR"), or at the Canadian Prime Rate, plus an applicable margin.
+Added: The Adjusted Term SOFR is defined as (i) the SOFR plus (ii) 11.448 basis points for a one-month tenor and 26.161 basis points for a three-month tenor;
+Added: provided that the Adjusted Term SOFR cannot be below zero.
+Added: The Base Rate is defined as a fluctuating interest rate equal to the greater of:
+Added: (i) rate of interest announced by Bank of Montreal from time to time as its prime rate;
+Added: (ii) the U.S.
+Added: federal funds rate plus 0.50%;
+Added: (iii) Adjusted Term SOFR for one month period plus 1.00%;
+Added: or (iv) 1.00%.
+Added: Depending on the amount of average availability, the applicable margin is between 1.00% to 1.50% for Base Rate and Canadian Prime Rate borrowings, which includes either U.S.
+Added: or Canadian prime rate, and between 2.00% and 2.50% for Adjusted Term SOFR borrowings.
+Added: Interest is payable either (i) monthly for Base Rate or Canadian Prime Rate borrowings or (ii) the last day of the interest period for Adjusted Term SOFR borrowings, as set forth in the ABL Facility.
+Added: The fee for undrawn amounts is 0.25% per annum and is due quarterly.
+Added: The interest rate in effect for borrowings outstanding at June 30, 2022, including applicable margin, was 6.00%.
+Added: Financial instruments with interest rate risk at June 30, 2022 were as follows:
+Added: Maturity by Fiscal Year
+Added: 2023 2024 2025 2026 2027 Fair Value as of June 30, 2022
+Added: (in thousands)
+Added: Long-term debt:
+Added: Variable rate debt $ — $ — $ — $ — $ 15,000 $ 15,000
+Added: If the interest in effect for borrowings outstanding at June 30, 2022, including applicable margin, increases 1.00%, then our interest expense would only increase $0.2 million, which would not have a material impact to our business.
Foreign Currency Risk
15 unchanged sentences
We have no direct commodity exposure, but we do have exposure to materials derived from certain commodities including steel plate, steel pipe, and copper, which are key materials we use.
+Added: The COVID-19 Pandemic and the war between Russia and Ukraine has resulted in disruptions to global supply chains, which have led to higher prices for some of the materials we need to run our business.
We mitigate these risks primarily by procuring materials upon contract execution to ensure that our purchase price approximates the costs included in the project estimate, and also by negotiating contract escalation clauses to cover unexpected costs due to fluctuations in materials costs.
−Removed: The ongoing COVID-19 pandemic has resulted in disruptions to global supply chains, which have led to higher prices for some of the materials we need to run our business.
We have been proactive with managing our procurement processes to help reduce the impacts of rising materials prices on our business and to help ensure we continue to have the materials we need available.
However, rising prices and the potential for materials shortages have interjected additional risk into bidding and executing work profitably.
−Removed: The timing of normalization of the global supply chains is uncertain and will depend on several factors, including the speed of recovery from the pandemic, producer capacity, the level of imports, worldwide demand, tariffs on imported goods and other market conditions.
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.