PENN Entertainment, Inc. 10-Q

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK We are exposed to market risk from adverse changes in interest rates with respect to the short-term floating interest rate on borrowings under our Senior Secured Credit Facilities. As of June 30, 2020, the Company’s Senior Secured Credit Facilities had a gross outstanding balance of $2,436.4 million, consisting of a $654.6 million Term Loan A Facility, a $1,111.8 million Term Loan B-1 Facility, and a Revolving Credit Facility, which had $670.0 million drawn as of June 30, 2020. In May 2020, the Company completed an offering of $330.5 million aggregate principal amount of 2.75% Convertible Notes that mature on May 15, 2026, unless earlier converted, redeemed or repurchased. Interest on the Convertible Notes is payable on May 15 th and November 15 th of each year, beginning on November 15, 2020. The table below provides information as of June 30, 2020 about our long-term debt obligations that are sensitive to changes in interest rates, including the notional amounts maturing during the twelve month period presented and the related weighted-average interest rates by maturity dates. (dollars in millions) 7/01/20 - 06/30/21 7/01/21 - 06/30/22 7/01/22 - 06/30/23 7/01/23 - 06/30/24 7/01/24 - 06/30/25 Thereafter Total Fair Value Fixed rate $ — $ — $ — $ — $ — $ 400.0 $ 400.0 $ 375.3 Average interest rate 5.625 % Fixed rate $ — $ — $ — $ — $ — $ 330.5 $ 330.5 $ 497.1 Average interest rate 2.75 % Variable rate $ 55.5 $ 73.2 $ 82.0 $ 1,159.0 $ 11.3 $ 1,055.4 $ 2,436.4 $ 2,345.4 Average interest rate (1) 3.60 % 3.63 % 3.65 % 3.74 % 3.00 % 3.00 % (1) Estimated rate, reflective of forward LIBOR as of June 30, 2020 plus the spread over LIBOR applicable to variable-rate borrowing.