QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: As of December 31, 2020, the Company had $697.9 million of gross variable rate debt outstanding, (i.e.
−Removed: outstanding principal on term loans A-1 and A-2), bearing interest at a weighted average rate of 2.3%.
−Removed: An increase in market interest rates of 1.00% would add approximately $6.9 million to annual interest expense, excluding the effect of our interest rate swaps.
−Removed: The swaps cover notional principal equal to $289.4 million, or approximately 41.5% as of December 31, 2020.
−Removed: The Company is required to pay a combined fixed rate of approximately 1.16% and receive a variable rate based on one month LIBOR (0.15% at December 31, 2020), to manage a portion of its interest rate risk.
−Removed: Changes in the net interest paid or received under the swaps would offset a corresponding portion of the change in interest expense on the variable rate debt outstanding.
+Added: The outstanding term loans under the Prior Credit Agreement, and associated interest rate swap liabilities, were repaid and terminated on July 1, 2021.
+Added: We have not drawn on the Credit Agreement as of December 31, 2021.
+Added: As a result, our exposure to significant risks concerning fluctuating variable interest rates has been mitigated.
+Added: We expect to start drawing against the Credit Agreement in first quarter of 2022, with additional borrowings occurring as needed to fund the Company's future capital expenditures.
+Added: We expect to draw $300 million against the Credit Agreement by June 2023.
+Added: Fluctuations in interest rates on future borrowings could result in increased market risk.
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.