6 unchanged sentences
Interest Rate Risk
−Removed: We are exposed to interest rate risk through our variable rate debt, primarily due to changes in LIBOR.
+Added: Due to the upcoming discontinuation of LIBOR on June 30, 2023, we amended our outstanding variable rate debt agreements and active interest rate swaps to change the interest rate benchmark from LIBOR to Daily Simple SOFR in December 2022.
+Added: In March 2023, we modified our benchmark rates from LIBOR to Daily Simple SOFR for our forward-starting interest rates swaps.
+Added: We are exposed to interest rate risk through our variable rate debt, primarily due to changes in SOFR.
However, we use interest rate swaps to manage our exposure to interest rate movements on our term credit agreements by swapping existing and anticipated future borrowings from floating rates to fixed rates.
−Removed: As of September 30, 2022, we had $750 million of U.S.
−Removed: variable rate debt outstanding on our term credit agreements.
−Removed: The notional amount of outstanding interest rate swap contracts with respect to our term credit agreements at September 30, 2022 was $750 million.
−Removed: The Term Credit Agreement matures in April 2028, with the associated interest rate swaps maturing in August 2024.
−Removed: 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 2021 Incremental Term Loan Facility and associated interest rate swaps mature in June 2029.
−Removed: 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.
+Added: As of March 31, 2023, we had $1 billion of U.S.
+Added: long-term variable rate debt outstanding on our term credit agreements.
+Added: The notional amount of outstanding interest rate swap contracts with respect to our term credit agreements at March 31, 2023 was $850 million.
+Added: The $350 million 2015 Term Loan Facility matures in April 2028, with the associated interest rate swaps maturing in August 2024.
+Added: We have entered into forward starting interest rate swaps to cover $150 million of the 2015 Term Loan Facility through the extended maturity date.
+Added: The 2016 Incremental Term Loan Facility and associated interest rate swaps mature in May 2026, and the 2021 Incremental Term Loan Facility and associated interest rate swaps mature in June 2029.
+Added: We have entered into an interest rate swap agreement to cover $100 million of borrowings under the 2022 Incremental Term Loan Facility through the maturity date in December 2027.
+Added: At this borrowing level, a hypothetical one-percentage point increase/decrease in interest rates would result in a corresponding increase/decrease in interest payments and expense of approximately $1.5 million over a 12-month period.
The fair market value of our fixed interest rate debt is also subject to interest rate risk.
−Removed: The estimated fair value of our fixed rate debt at September 30, 2022 was $427.9 million compared to the $515.6 million principal amount.
+Added: The estimated fair value of our fixed rate debt at March 31, 2023 was $441.2 million compared to the $522.2 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 September 30, 2022 would result in a corresponding decrease/increase in the fair value of our fixed rate debt of approximately $28 million and $30 million, respectively.
−Removed: We estimate the periodic effective interest rate on our U.S.
−Removed: long-term fixed and variable rate debt to be approximately 2.6% after consideration of interest rate swaps and estimated patronage refunds, excluding unused commitment fees on the revolving credit facility.
−Removed: The following table summarizes our outstanding debt, interest rate swaps and average interest rates, by year of expected maturity and their fair values at September 30, 2022:
+Added: A hypothetical one-percentage point increase/decrease in prevailing interest rates at March 31, 2023 would result in a corresponding decrease/increase in the fair value of our fixed rate debt of approximately $27 million and $29 million, respectively.
+Added: We estimate the periodic effective interest rate on our long-term fixed and variable rate debt to be approximately 3.1% after consideration of interest rate swaps and estimated patronage refunds, excluding unused commitment fees on the revolving credit facility.
+Added: The following table summarizes our outstanding debt, interest rate swaps and average interest rates, by year of expected maturity and their fair values at March 31, 2023:
(Dollars in thousands) 2023 2024 2025 2026 2027 Thereafter Total Fair Value
14 unchanged sentences
(a) Excludes estimated patronage refunds.
−Removed: (b) Interest rates as of September 30, 2022.
+Added: (b) Interest rates as of March 31, 2023.
Foreign Currency Exchange Rate Risk
4 unchanged sentences
Foreign Exchange Exposure
−Removed: At September 30, 2022, the New Zealand subsidiary had foreign currency exchange contracts with a notional amount of $145.0 million and foreign currency option contracts with a notional amount of $66.0 million outstanding related to foreign export sales.
+Added: At March 31, 2023, the New Zealand subsidiary had foreign currency exchange contracts with a notional amount of $128.8 million and foreign currency option contracts with a notional amount of $78.0 million outstanding related to foreign export sales.
The amount hedged represents a portion of forecasted U.S.
dollar denominated export timber and log trading sales proceeds over the next 36 months and next 2 months, respectively.
−Removed: The following table summarizes our outstanding foreign currency exchange rate risk contracts at September 30, 2022:
+Added: The following table summarizes our outstanding foreign currency exchange rate risk contracts at March 31, 2023:
(Dollars in thousands) 0-1 months 1-2 months 2-3 months 3-6 months 6-12 months 12-18 months 18-24 months 24-36 months Total Fair Value
8 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.