3 unchanged sentences
The interest rate on our Inventory Financing Facility for major unit inventory is calculated using SOFR plus an applicable margin.
−Removed: Based on an outstanding balance under the Seventh Inventory Financing Facility of $489.0 million as of September 30, 2023 , a change of 100 basis points in the underlying interest rate would cause a change in interest expense of approximately $4.9 million.
−Removed: We do not currently hedge our interest rate exposure.
+Added: Based on the portion of the outstanding balance under the Inventory Financing Facility that is not covered by interest rate swaps of $243.4 million as of September 30, 2024 , a change of 100 basis points in the underlying interest rate would cause a change in interest expense of approximately $2.4 million.
This hypothetical increase does not take into account a corresponding increase to the programs that we may receive from our manufacturers or management’s ability to curtail inventory and related floor plan balances, both of which would reduce the impact of the interest rate increase.
1 unchanged sentence
The interest rate on our A&R Credit Facility is calculated using Term SOFR (with a 0.00% floor) plus an applicable margin.
−Removed: Based on an outstanding balance of $428.3 million and Term SOFR as of September 30, 2023 , a change of 100 basis points in the underlying interest rate would cause a change in interest expense of approximately $4.3 million.
−Removed: We do not currently hedge our interest rate exposure.
+Added: Based on the portion of the outstanding balance that is not covered by interest rate swaps of $226.6 million as of September 30, 2024 , a change of 100 basis points in the underlying interest rate would cause a change in interest expense of approximately $2.3 million.
+Added: As part of our strategy to mitigate the exposure risk to fluctuations in interest rates for our Inventory Financing Facility and A&R Credit Facility, we may enter into various interest rate swap agreements.
+Added: As of September 30, 2024 we had two interest rate swap agreements with a combined notional principal amount of $400.0 million .
+Added: The swaps are designed to provide a hedge against the changes in variable cash flows regarding fluctuations in the SOFR and Term SOFR rates which are used in calculating interest payments.
+Added: All of our interest rate swaps qualify for cash flow hedge accounting.
+Added: The following table provides information regarding our interest rate swaps as of September 30, 2024:
+Added: Inception Date Hedged Rate Notional Value at Inception (in thousands) Maturity Date
+Added: September 2024 SOFR $ 200,000 September 2027
+Added: September 2024 Term SOFR 200,000 September 2027
Foreign Currency Risk
4 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.