2 unchanged sentences
We are exposed to interest rate risk on certain of our short and long-term debt obligations used to finance our operations and acquisitions.
−Removed: We have SOFR-based floating rate borrowings under the Credit Agreement, which expose us to variability in interest payments due to changes in the reference interest rates.
+Added: We have SOFR-based floating rate borrowings under the Term Loan A / Revolver Credit Agreement and Term Loan B Credit Agreement, which expose us to variability in interest payments due to changes in the reference interest rates.
From time to time, we use derivative instruments as hedges against the impact of interest rate changes on future earnings and cash flows.
We do not enter into such derivative instruments for speculative or trading purposes.
−Removed: At June 30, 2024, we had a total of $479.4 million of variable rate debt outstanding.
−Removed: Holding other factors constant and absent the interest rate swap agreements described above, a hypothetical 1% change in our borrowing rates would result in a $4.8 million change in our annual interest expense based on our variable rate debt outstanding at June 30, 2024.
−Removed: The following table presents the future principal payment obligations, interest payments, and fair values associated with the Company’s debt instruments assuming the Company’s actual level of variable rate debt as of June 30, 2024 (unaudited, in thousands):
+Added: At December 31, 2024, we had a total of $1.24 billion of variable rate debt outstanding.
+Added: Holding other factors constant and absent the interest rate swap agreements described above, a hypothetical 1% change in our borrowing rates would result in a $12.4 million change in our annual interest expense based on our variable rate debt outstanding at December 31, 2024.
+Added: The notional amount of the Company’s outstanding interest rate swap contract at December 31, 2024 was $300.0 million.
+Added: The maturity date of this swap is June 30, 2027, and the fair value of the outstanding swap contract was $15.6 million as of December 31, 2024.
+Added: See also Note 15 - Investment in Derivative Instruments and Note 16 - Fair Value Measurements to the unaudited consolidated financial statements included elsewhere in this report.
+Added: The following table presents the future principal payment obligations, interest payments, and fair values associated with the Company’s debt instruments assuming the Company’s actual level of variable rate debt as of December 31, 2024 (unaudited, in thousands).
For the Fiscal Year Ending September 30, Fair
2 unchanged sentences
Term Loans Principal Payments $ 27,625 $ 40,375 $ 342,250 $ 8,500 $ 8,500 $ 809,625 $ 1,236,875 $ 1,236,875
−Removed: Revolving Credit Facility principal payments — — — 81,850 — 81,850 82
Interest payments (1)
$ 71,527 $ 83,924 $ 75,754 $ 58,238 $57,637 $ 127,485
−Removed: (1) Represents projected interest payments using the Company’s June 2024 SOFR-based floating rate of 6.93% per annum.
−Removed: The notional amount of the Company’s outstanding interest rate swap contract at June 30, 2024 was $300.0 million.
−Removed: The maturity date of this swap is June 30, 2027, and the fair value of the outstanding swap contract was $20.5 million as of June 30, 2024.
−Removed: See also Note 15 - Investment in Derivative Instruments and Note 16 - Fair Value Measurements to the unaudited consolidated financial statements included elsewhere in this report.
−Removed: Inflation Risk
−Removed: We are subject to the effects of inflation through wage pressures, increases in the cost of raw materials used to produce HMA, and increases in other items, such as fuel, concrete and steel.
−Removed: In recent years, inflation, supply chain and upward wage pressures have had a significant impact on the global economy, including the construction industry in the United States.
−Removed: While it is impossible to fully eliminate the impact of these factors, we seek to recover increasing costs by obtaining higher prices for our products or by including the anticipated price increases in our bids.
−Removed: Due to the relatively short-term duration of our construction contracts, we are generally able to reduce our exposure to price increases on new contracts, but we are limited in our ability to pass through increased costs for projects already in our backlog.
−Removed: Going forward, continued cost inflation in these areas may require further price adjustments to maintain profit margin, and any price increases may have a negative effect on demand.
+Added: (1) Represents projected interest payments using the Company’s December 2024 weighted average SOFR-based floating rate of 7.03% per annum.
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.