QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: Throughout 2024, we borrowed a total of $125 million pursuant to the variable rate delayed draw Term Loans available under the Credit Agreement.
−Removed: As of December 31, 2024, the Company had $418.0 million of gross variable rate debt outstanding.
−Removed: The weighted-average interest rate was 6.42% for the Term Loans at December 31, 2024.
+Added: As of December 31, 2025, the Company has an outstanding debt balance of $642.4 million, which includes ABS Notes and an RCF.
+Added: Shentel’s ABS Notes, which include Class A-2 Notes and Class B Notes, have outstanding balances of $489.1 million and $78.3 million, respectively.
+Added: The borrowed Class A-2 Notes and the Class B Notes incur interest at the fixed rate 5.64% and 6.03%, respectively;
+Added: therefore, the Class A-2 and the Class B Notes are not subject to fluctuations in market interest rates.
+Added: The borrowed RCF bears interest at a variable rate determined by one-month term SOFR, plus a margin based on net leverage.
+Added: As of December 31, 2025, the Company had $75.0 million of gross variable rate debt outstanding under the RCF.
+Added: The interest rate was 6.19% for the RCF at December 31, 2025.
An increase in market interest rates of 1.00% would add approximately $0.8 million to annual interest expense.
−Removed: In May 2023, Shentel entered into pay fixed, receive variable interest rate swaps totaling $150.0 million of notional principal (the “Swaps”).
−Removed: The Swaps contain monthly payment terms that became effective in May 2024 which extend through their maturity dates in June 2026.
−Removed: The Swaps are designated as cash flow hedges, representing 50% of the Company’s Term Loan A-1 and A-2 outstanding debt.
−Removed: The Company uses the Swaps to manage its exposure to interest rate risk for a portion of its long-term variable-rate Term Loans through interest rate swaps.
−Removed: When the Swaps’ payments term began, Shentel effectively pays a fixed weighted-average interest rate of 2.90%, prior to interest rate margin provided under our credit facility.
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.