Item 7A. Quantitative and Qualitative Disclosures About Market Risk
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
As of December 31, 2025, the Company has an outstanding debt balance of $642.4 million, which includes ABS Notes and an RCF. 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. The borrowed Class A-2 Notes and the Class B Notes incur interest at the fixed rate 5.64% and 6.03%, respectively; therefore, the Class A-2 and the Class B Notes are not subject to fluctuations in market interest rates. The borrowed RCF bears interest at a variable rate determined by one-month term SOFR, plus a margin based on net leverage.
As of December 31, 2025, the Company had $75.0 million of gross variable rate debt outstanding under the RCF. 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.
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