13 unchanged sentences
Interest Rate Risk.
−Removed: At December 31, 2020, we had interest rate swap agreements to fix the interest rate on $1.7 billion of variable rate LIBOR-based debt.
+Added: At June 30, 2021, we had interest rate swap agreements to fix the interest rate on $1.7 billion of variable rate LIBOR-based debt.
See Note 16 to our unaudited condensed consolidated financial statements for additional information.
−Removed: The difference between the fixed rate to be paid and the variable rate received under the terms of the interest rate
−Removed: swap agreements will be recognized as interest expense for the related debt.
+Added: The difference between the fixed rate to be paid and the variable rate received under the terms of the interest rate swap agreements will be recognized as interest expense for the related debt.
Changes in the variable interest rates to be paid or received pursuant to the terms of the interest rate swap agreements will have a corresponding effect on future cash flows.
−Removed: Certain of our borrowings, primarily borrowings under our Senior Credit Facilities and certain production loans, are, and are expected to continue to be, at variable rates of interest and expose us to interest rate risk.
+Added: Certain of our borrowings, primarily borrowings under our Senior Credit Facilities, certain production loans and our Production Tax Credit Facility, are, and are expected to continue to be, at variable rates of interest and expose us to interest rate risk.
If interest rates increase, our debt service obligations on the variable rate indebtedness would increase even though the amount borrowed remained the same, and our net income would decrease.
1 unchanged sentence
The applicable margin with respect to loans under our Term Loan B is a percentage per annum equal to a LIBOR rate plus 2.25%.
−Removed: Assuming the revolving credit facility is drawn up to its maximum borrowing capacity of $1.5 billion, based on the applicable LIBOR in effect as of December 31, 2020, each quarter point change in interest rates would result in a $3.6 million change in annual net interest expense on the revolving credit facility, Term Loan A, Term Loan B and interest rate swap agreements.
−Removed: The variable interest production loans incur interest at rates ranging from approximately 2.28% to 2.96% and applicable margins ranging from 1.75% over the one, two, or three-month LIBOR to 2.25% over the one, two, or three-month LIBOR.
+Added: Assuming the revolving credit facility is drawn up to its maximum borrowing capacity of $1.5 billion, based on the applicable LIBOR in effect as of June 30, 2021, each quarter point change in interest rates would result in a $3.4 million change in annual net interest expense on the revolving credit facility, Term Loan A, Term Loan B and interest rate swap agreements.
+Added: The variable interest production loans incur interest at rates ranging from approximately 2.22% to 2.66%, including applicable margins ranging from 1.75% over the one, two, or three-month LIBOR to 2.25% over the one, two, or three-month LIBOR.
A quarter point increase of the interest rates on the outstanding principal amount of our variable rate production loans would result in $1.2 million in additional costs capitalized to the respective film or television asset.
−Removed: At December 31, 2020, our 5.875% Senior Notes and 6.375% Senior Notes had an outstanding carrying value of $1,046.5 million, and an estimated fair value of $1,085.8 million.
−Removed: A 1% increase in the level of interest rates would decrease the fair value of the 5.875% Senior Notes and 6.375% Senior Notes by approximately $19.3 million, and a 1% decrease in the level of interest rates would increase the fair value of the 5.875% Senior Notes and 6.375% Senior Notes by approximately $12.0 million.
+Added: The applicable margin with respect to advances under the Production Tax Credit Facility is a percentage per annum equal to a LIBOR rate plus 1.50%.
+Added: Assuming the Production Tax Credit Facility is utilized up to its maximum capacity of $220.0 million, based on the applicable LIBOR in effect as of June 30, 2021, each quarter point change in interest rates would result in a $0.6 million change in annual net interest expense on the Production Tax Credit Facility.
+Added: At June 30, 2021, our 5.500% Senior Notes had an outstanding carrying value of $963.1 million, and an estimated fair value of $1,052.5 million.
+Added: A 1% increase in the level of interest rates would decrease the fair value of the 5.500% Senior Notes by approximately $43.2 million, and a 1% decrease in the level of interest rates would increase the fair value of the 5.500% Senior Notes by approximately $30.4 million.
The following table presents information about our financial instruments that are sensitive to changes in interest rates.
−Removed: The table also presents the cash flows of the principal amounts of the financial instruments, or the cash flows associated with the notional amounts of interest rate derivative instruments, and related weighted-average interest rates by expected maturity or required principal payment dates and the fair value of the instrument as of December 31, 2020:
−Removed: Three Months Ending March 31, Year Ending March 31, Fair Value
−Removed: 2021 2022 2023 2024 2025 Thereafter Total December 31,
+Added: The table also presents the cash flows of the principal amounts of the financial instruments, or the cash flows associated with the notional amounts of interest rate derivative instruments, and related weighted-average interest rates by expected maturity or required principal payment dates and the fair value of the instrument as of June 30, 2021:
+Added: Nine Months Ending March 31, Year Ending March 31, Fair Value
+Added: 2022 2023 2024 2025 2026 Thereafter Total June 30,
(Amounts in millions)
−Removed: Debt and Production Loans
+Added: Debt, Production Loans and Production Tax Credit Facility
Variable Rates:
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Average Interest Rate 2.34 % 2.40 % 2.36 % — — —
−Removed: 5.875% Senior Notes — — — — 518.7 — 518.7 526.5
−Removed: Interest Rate — — — — 5.875 % —
+Added: Production tax credit facility (2)
+Added: — — — 184.5 — — 184.5 184.5
+Added: Average Interest Rate — — — 1.60 % — —
5.500% Senior Notes — — — — — 1,000.0 1,000.0 1,052.5
4 unchanged sentences
(1) The effective interest rate in the table above is before the impact of interest rate swaps.
+Added: (2) The repayment amount for the Production Tax Credit Facility represents the amount outstanding at June 30, 2021, and the repayment date represents the maturity date of the Production Tax Credit Facility (January 27, 2025), however net advances and payments under the Production Tax Credit Facility can fluctuate depending on the amount of collateral available.
(3) Represents interest rate swap agreements on certain of our LIBOR-based floating-rate debt with fixed rates paid ranging from 1.840% to 2.915% with maturities beginning in March 2025 through March 2030.
1 unchanged sentence
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.