25 unchanged sentences
We typically expect that interest rates on the investments held in our portfolio will be based on LIBOR, with many of these investments also having a LIBOR floor.
−Removed: As of September 30, 2021, 93.5%, or $508,030,189 (at cost), of our debt portfolio investments bore interest at variable rates, which are U.S.
+Added: As of March 31, 2022, 97%, or $699,256,213 (at cost), of our debt portfolio investments bore interest at variable rates, which are U.S.
Prime Rate or LIBOR-based and subject to certain floors, and one of our debt portfolio investments bore interest at a fixed rate.
3 unchanged sentences
In a low interest rate environment, debt investments with interest rate floors substantially in excess of current prevailing interest rates may be more likely to experience early termination.
−Removed: Borrowings under the Credit Facilities bear interest, at our election at the time of drawdown, at a rate per annum equal to the LIBOR rate for the applicable interest period, subject to a LIBOR rate floor of 0.50%, plus 3.00%.
+Added: Borrowings under the Credit Agreement bear interest, at our election at the time of drawdown, at a rate per annum equal to the SOFR rate for the applicable interest period, subject to a SOFR rate floor of 0.15%, plus (1) 3.35% at any time that there are fourteen or fewer obligaros that are not affiliates of the Company with respect to the loan;
+Added: (2) 3.10% at any time that there are fifteen or more obligors that are not affiliates but fewer than thirty obligors that are not ffiliates with respect to the loan;
+Added: and (3) 2.95% at any time that there are thirty or more obligors that are not affiliates with respect to the loan;
+Added: and (b) when the Company’s leverage ratio on the last day of the immediately preceding interest period was greater than 1.0x, 3.35%.
On March 5, 2021, the United Kingdom’s Financial Conduct Authority (the “FCA”), which regulates LIBOR, announced that (i) 24 LIBOR settings would cease to exist immediately after December 31, 2021 (all seven euro LIBOR settings;
−Removed: all seven Swiss franc LIBOR settings;
+Added: all seven Swiss franc
+Added: LIBOR settings;
the Spot Next, 1-week, 2-month, and 12-month Japanese yen LIBOR settings;
the overnight, 1-week, 2-month, and 12-month sterling LIBOR settings;
−Removed: and the 1-week and 2-month US dollar LIBOR settings);
−Removed: (ii) the overnight and 12-month US LIBOR settings would cease to exist after June 30, 2023;
−Removed: and (iii) the FCA would consult on whether the remaining nine LIBOR settings should continue to be published on a synthetic basis for a certain period using the FCA’s proposed new powers that the UK government is legislating to grant to them.
−Removed: Central banks and regulators in a number of major jurisdictions (for example, United States, United Kingdom, European Union, Switzerland and Japan) have convened working groups to find, and implement the transition to, suitable replacements for interbank offered rates.
−Removed: To identify a successor rate for U.S.
−Removed: dollar LIBOR, the Alternative Reference Rates Committee (“ARRC”), a U.S.-based group convened by the Federal Reserve Board and the Federal Reserve Bank of New York, was formed.
−Removed: On July 29, 2021, the ARCC formally recommended SOFR as its preferred alternative replacement rate for LIBOR.
−Removed: SOFR is a measure of
−Removed: the cost of borrowing cash overnight, collateralized by U.S.
−Removed: Treasury securities, and is based on directly observable U.S.
−Removed: Treasury-backed repurchase transactions.
−Removed: It is not possible to predict the effect of any such changes, any establishment of alternative reference rates or other reforms to LIBOR that may be enacted in the United States, United Kingdom or elsewhere or, whether the COVID-19 pandemic will have further effect on LIBOR transition plans.
−Removed: The elimination of LIBOR or any other changes or reforms to the determination or supervision of LIBOR could have an adverse impact on the market for or value of any LIBOR-linked securities, loans, and other financial obligations or extensions of credit held by or due to us or on our overall financial condition or results of operations.
−Removed: In addition, if LIBOR ceases to exist, we may need to renegotiate agreements extending beyond 2021 with our portfolio companies that utilize LIBOR as a factor in determining the interest rate, in order to replace LIBOR with the new standard that is established, which may have an adverse effect on our overall financial condition or results of operations.
+Added: and the 1-week and 2-month US dollar LIBOR settings) and (ii) the overnight and 1, 3, 6 and 12-month US LIBOR settings would cease to exist after June 30, 2023;
+Added: and (iii) the FCA would consult on whether the remaining LIBOR settings should continue to be published on a synthetic basis for a certain period using the FCA’s proposed new powers that the UK government is legislating to grant to them.
+Added: Additionally, on March 15, 2022, President Biden signed into law the Consolidated Appropriations Act of 2022, which among other things, provides for the use of interest rates based on SOFR in certain contracts currently based on LIBOR and a safe harbor from liability for utilizing SOFR-based interest rates as a replacement for LIBOR.
+Added: The elimination of LIBOR could have an adverse impact on the market for or value of any LIBOR-linked securities, loans, and other financial obligations or extensions of credit held by or due to us or on our overall financial condition or results of operations.
+Added: In addition, we may need to renegotiate agreements extending beyond 2021 with our portfolio companies that utilize LIBOR as a factor in determining the interest rate, in order to replace LIBOR with the new standard that is established, which may have an adverse effect on our overall financial condition or results of operations.
Following the replacement of LIBOR, some or all of these agreements may bear interest a lower interest rate, which could have an adverse impact on our results of operations.
−Removed: Moreover, if LIBOR ceases to exist, we may need to renegotiate certain terms of our credit facilities.
−Removed: If we are unable to do so, amounts drawn under our credit facilities may bear interest at a higher rate, which would increase the cost of our borrowings and, in turn, affect our results of operations.
−Removed: The global COVID-19 pandemic may also adversely impact the timing of many firms’ LIBOR transition planning.
−Removed: We continue to assess the potential impact of the COVID-19 pandemic on our LIBOR transition plans.
+Added: In addition, the amendments to the terms of our Credit Agreement in connection with the discountinuation of LIBOR may cause the Credit Agreement to bear interest at a higher rate, which would increase the cost of our borrowings and, in turn, affect our results of operations.
Because we currently borrow, and plan to borrow in the future, money to make investments, our net investment income would be dependent upon the difference between the rate at which we borrow funds and the rate at which we invest the funds borrowed.
7 unchanged sentences
These risks include the possibility of significant fluctuations in the foreign currency markets, the imposition or modification of foreign exchange controls and potential illiquidity in the secondary market.
−Removed: These risks will vary depending upon the currency or currencies involved, and may be exacerbated by the COVID-19 pandemic and its impact on foreign financial markets.
+Added: These risks will vary depending upon the currency or currencies involved, and may be exacerbated by market disruptions, including the continued impact of the the COVID 19 pandemic on foreign financial markets.
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.