3 unchanged sentences
Based upon the nature of our operations, the principal market risk to which we are exposed is the risk related to interest rate fluctuations.
−Removed: As of June 30, 2022, we had total indebtedness of approximately $175.0 million under the Term Loan and $237.0 million borrowings under the Revolver, both of which are floating rate debt with a variable interest rate.
−Removed: For the three and six months ended June 30, 2022, we had average daily outstanding borrowings on our Revolver of $149.2 million and $134.1 million, respectively.
−Removed: On September 28, 2020 and effective through the maturity date of December 23, 2024, the Company entered into an interest rate derivative in order to hedge its market interest risk associated with the Term Loan.
−Removed: The interest rate derivative converts the variable rate debt on the Term Loan to a fixed interest rate of 0.21%, plus a margin of 1.15%.
−Removed: Additionally, we occasionally fund acquisitions through the use of our Revolver which bears an interest rate determined by either (i) LIBOR, plus a margin ranging from 1.20% to 1.80%, based on the Company’s consolidated total leverage ratio, or (ii) a Base Rate (as defined in the Credit Facility), plus a margin ranging from 0.20% to 0.80%, based on the Company’s consolidated total leverage ratio.
+Added: As of September 30, 2022, we had total indebtedness of approximately $175.0 million under the 2024 Term Loan, $200.0 million under the 2028 Term Loan, and $30.0 million of borrowings under the New Revolver, all of which are floating rate debt with a variable interest rate.
+Added: For the three and nine months ended September 30, 2022, we had average daily outstanding borrowings on our revolving credit facilities of $137.1 million and $135.1 million, respectively.
+Added: On September 28, 2020 and August 11, 2022 and effective through the maturity dates of December 23, 2024 and February 11, 2028, respectively, the Company entered into interest rate derivative contracts in order to hedge its market interest risk associated with the 2024 Term Loan and the 2028 Term Loan, respectively.
+Added: The interest rate derivative contracts convert the variable rate debt on the term loans to a fixed interest rate (as further described in “Note 6 – Debt” in the Company’s condensed consolidated financial statements).
+Added: Additionally, we will occasionally fund acquisitions through the use of our New Revolver which bears an interest rate determined by either (i) SOFR, plus a SOFR adjustment of 0.10%, plus a margin ranging from 1.00% to 1.45%, based on the Company’s consolidated total leverage ratio, or (ii) a Base Rate (as defined in the New Credit Facility), plus a margin ranging from 0.00% to 0.45%, based on the Company’s consolidated total leverage ratio.
+Added: During the year, we also funded acquisitions through the use of our Prior Revolver, which was fully paid down in conjunction with the execution of the New Credit Agreement.
Many factors, including governmental monetary and tax policies, domestic and international economic and political considerations, and other factors that are beyond our control contribute to our interest rate risk.
−Removed: Based on the results of our sensitivity analysis and daily outstanding borrowings on the Revolver during 2022, which assumes a 1% adverse change in the interest rate as of June 30, 2022, the estimated market risk exposure for the Revolver was $1.3 million.
+Added: Based on the results of our sensitivity analysis and daily outstanding borrowings on the New Revolver during 2022, which assumes a 1% adverse change in the interest rate as of September 30, 2022, the estimated market risk exposure for the New Revolver was approximately $0.1 million.
On March 5, 2021, the Financial Conduct Authority (“FCA”) announced that USD LIBOR will no longer be published after June 30, 2023.
5 unchanged sentences
In addition, uncertainty about the extent and manner of future changes may result in interest rates and/or payments that are higher or lower than if LIBOR were to remain available in its current form.
−Removed: The Company’s Term Loan and Revolver, which mature on December 23, 2024 and December 23, 2023, respectively, are indexed to LIBOR, and provide for procedures for determining an alternative base rate.
+Added: The Company’s 2024 Term Loan, which matures on December 23, 2024, is indexed to LIBOR, and provides for procedures for determining an alternative base rate.
The Company continues to monitor and evaluate the related risks, including future negotiations with lenders and other counterparties.
8 unchanged sentences
Adjustments to systems and mathematical models to properly process and account for alternative rates will be required, which may strain the model risk management and information technology functions and result in substantial incremental costs for the company.
−Removed: Off-Balance Sheet Arrangements
−Removed: As of June 30, 2022 and December 31, 2021, we did not have any off-balance sheet arrangements that have had or are reasonably likely to have a material effect on our financial condition, revenues or expenses, results of operations, liquidity, capital resources or capital expenditures.
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.