QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: Throughout 2022, we borrowed a total of $75 million pursuant to the variable rate delayed draw term loans available under the Credit Agreement, and we expect to continue to borrow under our Credit Agreement as needed to fund the Company's future capital expenditures.
−Removed: We expect to draw an additional $225.0 million against the Credit Agreement by June 2023.
−Removed: Fluctuations in interest rates on future borrowings could result in increased market risk.
−Removed: As of December 31, 2022, the Company had $75 million of gross variable rate debt outstanding, bearing interest at a weighted average rate of 4.63%.
+Added: Throughout 2023, we borrowed a total of $225 million pursuant to the variable rate delayed draw Term Loans available under the Credit Agreement.
+Added: As of December 31, 2023, Shentel has borrowed the full amount available under our Term Loans.
+Added: As of December 31, 2023, the Company had $300 million of gross variable rate debt outstanding, bearing interest at 6.95%.
An increase in market interest rates of 1.00% would add approximately $3.0 million to annual interest expense.
+Added: In May 2023, Shentel entered into pay fixed, receive variable interest rate swaps totaling $150.0 million of notional principal (the “Swaps”).
+Added: The Swaps contain monthly payment terms beginning in May 2024 which extend through their maturity dates in June 2026.
+Added: The Swaps are designated as cash flow hedges, representing 50% of the Company’s expected outstanding debt.
+Added: The Company uses the Swaps to manage its exposure to interest rate risk for its long-term variable-rate Term Loans through interest rate swaps.
+Added: When the Swaps’ payments term begins, Shentel will effectively pay 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.