11 unchanged sentences
The notional amount of outstanding interest rate swap contracts with respect to our term credit agreements at December 31, 2021 was also $550 million.
−Removed: The maturity date of the Term Credit Agreement was extended from August 2024 to April 2028, with the associated interest rate swaps maturing in August 2024.
+Added: The Term Credit Agreement matures in April 2028, with the associated interest rate swaps maturing in August 2024.
We have entered into forward starting interest rate swaps to cover $150 million of the Term Credit Agreement through the extended maturity date.
−Removed: The Incremental Term Loan Agreement and associated interest rate swaps mature in May 2026, and the 2020 Incremental Term Loan Agreement matures in April 2025 with the associated interest rate swaps maturing in June 2030.
+Added: The Incremental Term Loan Agreement and associated interest rate swaps mature in May 2026.
At this borrowing level, a hypothetical one-percentage point increase/decrease in interest rates would result in no corresponding increase/decrease in interest payments and expense over a 12-month period.
−Removed: The fair market value of our long-term fixed interest rate debt is also subject to interest rate risk.
−Removed: The estimated fair value of our long-term fixed rate debt excluding the Timber Funds at December 31, 2020 was $414 million compared to the $395 million principal amount.
−Removed: The estimated fair value of our Timber Funds’ long-term fixed rate debt at December 31, 2020 was $60.5 million compared to the $57.4 million principal amount.
+Added: The fair market value of our fixed interest rate debt is also subject to interest rate risk.
+Added: The estimated fair value of our fixed rate debt at December 31, 2021 was $820.4 million compared to the $826.1 million principal amount.
We use interest rates of debt with similar terms and maturities to estimate the fair value of our debt.
Generally, the fair market value of fixed-rate debt will increase as interest rates fall and decrease as interest rates rise.
−Removed: A hypothetical one-percentage point increase/decrease in prevailing interest rates at December 31, 2020 would result in a corresponding decrease/increase in the fair value of our long-term fixed rate debt of approximately $11 million.
+Added: A hypothetical one-percentage point increase/decrease in prevailing interest rates at December 31, 2021 would result in a corresponding decrease/increase in the fair value of our fixed rate debt of approximately $38 million and $41 million, respectively.
We estimate the periodic effective interest rate on our U.S.
−Removed: long-term fixed and variable rate debt, excluding Timber Funds, to be approximately 3.1% after consideration of interest rate swaps and estimated patronage refunds and excluding unused commitment fees on the revolving credit facility.
−Removed: We estimate the periodic effective interest rate on our Timber Funds’ long-term fixed rate debt to be approximately 2.9% after consideration of estimated patronage refunds.
+Added: long-term fixed and variable rate debt to be approximately 3.0% after consideration of interest rate swaps and estimated patronage refunds and excluding unused commitment fees on the revolving credit facility.
The following table summarizes our outstanding debt, interest rate swaps and average interest rates, by year of expected maturity and their fair values at December 31, 2021:
3 unchanged sentences
Average interest rate (a)(b) — — — — 1.75% 1.70% 1.72%
−Removed: Fixed rate debt, excluding Timber Funds:
−Removed: Principal amounts — $325,000 — — $34,903 $35,000 $394,903 $413,631
−Removed: Average interest rate (b) — 3.75% — — 3.84% 4.98% 3.87%
−Removed: Fixed rate debt, Timber Funds:
+Added: Fixed rate debt:
Principal amounts $325,000 — — $23,588 $27,519 $450,000 $826,107 $820,435
11 unchanged sentences
Foreign Currency Exchange Rate Risk
−Removed: The functional currency of our New Zealand-based operations and New Zealand subsidiary is the New Zealand dollar.
−Removed: Through these operations and our ownership in the New Zealand subsidiary, we are exposed to foreign currency risk on cash held in foreign currencies, shareholder distributions which are paid in U.S.
−Removed: dollars and on foreign export sales and ocean freight payments that are predominantly denominated in U.S.
−Removed: To mitigate these risks, the New Zealand subsidiary routinely enters into foreign currency exchange contracts and foreign currency option contracts to hedge a portion of the New Zealand subsidiary’s foreign exchange exposure.
+Added: The New Zealand subsidiary’s export sales are predominantly denominated in U.S.
+Added: dollars, and therefore its cash flows are affected by fluctuations in the exchange rate between the New Zealand dollar and the U.S.
+Added: This exposure is partially managed by a natural currency hedge, as ocean freight payments and shareholder distributions are also paid in U.S.
+Added: We manage any excess foreign exchange exposure through the use of derivative financial instruments.
Sales and Expense Exposure
13 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.