National CineMedia, Inc. 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk The primary market risk to which we are exposed is interest rate risk. The Notes due 2026 and the Notes due 2028 are at fixed rates, and therefore are not subject to market risk. As of September 29, 2022, the only interest rate risk that we are exposed to is related to our $225.0 million revolving credit facilities and our term loans. A 100-basis point fluctuation in market interest rates underlying our term loans and revolving credit facilities would have the effect of increasing or decreasing our cash interest expense by approximately $5.3 million for an annual period on the $217.0 million in revolving credit balances, $49.4 million term loan and $259.2 million incremental term loan outstanding as of September 29, 2022. In response to the COVID-19 Pandemic, the government lowered the Federal Reserve interest rate leading to historically low interest rates. However, to combat macroeconomic headwinds, the government consistently raised the Federal Reserve interest rate throughout the nine months ended September 29, 2022. These increases have had the effect of increasing the Company's interest rate risk. If interest rates continue to rise, this will increase the Company’s interest rate risk.