4 unchanged sentences
As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.
−Removed: As of March 31, 2021, we had 13 investments with an aggregate principal balance of $271.4 million, net of obligations under participation agreements, that provide for interest income at an annual rate of LIBOR plus a spread, 11 of which are subject to a LIBOR floor.
+Added: As of June 30, 2021, we had 11 investments with an aggregate principal balance of $270.1 million, net of obligations under participation agreements, that provide for interest income at an annual rate of LIBOR plus a spread, 9 of which are subject to a LIBOR floor.
A decrease of 100 basis points in LIBOR would decrease our annual interest income, net of interest expense on participation agreements, by approximately $0.1 million, and an increase of 100 basis points in LIBOR would increase our annual interest income, net of interest expense on participation agreements, by approximately $0.8 million.
−Removed: Additionally, we had $40.6 million of borrowings outstanding under a mortgage loan payable that bear interest at an annual rate of LIBOR plus 3.85% with a LIBOR floor of 2.23%, that is collateralized by an office building;
−Removed: and $106.5 million of borrowings outstanding under an indenture and credit facility that bear interest at an annual rate of LIBOR plus 4.25% with a LIBOR floor of 1.0% collateralized by $183.7 million of first mortgages.
+Added: Additionally, we had $40.4 million of borrowings outstanding under a mortgage loan payable that bear interest at an annual rate of LIBOR plus 3.85% with a LIBOR floor of 2.23%, that is collateralized by an office building, $107.0 million of borrowings outstanding under an indenture and credit facility that bear interest at an annual rate of LIBOR plus 4.25% with a LIBOR floor of 1.0% collateralized by $184.3 million of first mortgages, and a revolving line of credit with an outstanding balance of $9.2 million that bears interest at an annual rate of LIBOR + 3.25% with a combined floor of 4.0% collateralized by a first mortgage of $13.2 million.
A decrease of 100 basis points in LIBOR had no impact on our total annual interest expense because the debts are protected by LIBOR floors and an increase of 100 basis points in LIBOR would increase our annual interest expense by approximately $0.1 million.
At the end of 2021, banks will no longer be required to report information that is used to determine LIBOR.
−Removed: As a result, LIBOR could be discontinued.
+Added: In July 2017, the U.K.
+Added: Financial Conduct Authority, which regulates the LIBOR administrator, ICE Benchmark Administration Limited (“IBA”), announced that it would cease to compel banks to participate in setting LIBOR as a benchmark by the end of 2021.
+Added: Such announcement indicates that market participants cannot rely on LIBOR being published after 2021.
+Added: On December 4, 2020, the IBA published a consultation on its intention to cease the publication of LIBOR.
+Added: For the most commonly used tenors (overnight and one, three, six and 12 months) of U.S.
+Added: dollar LIBOR, the IBA is proposing to cease publication immediately after June 30, 2023, anticipating continued rate submissions from panel banks for these tenors of U.S.
+Added: dollar LIBOR.
+Added: The IBA’s consultation also proposes to cease publication of all other U.S.
+Added: dollar LIBOR tenors, and of all non-U.S.
+Added: dollar LIBOR rates, after December 31, 2021.
The Alternative Reference Rates Committee, a steering committee comprised of large U.S.
13 unchanged sentences
While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in benefits of lower interest rates with respect to our portfolio of investments with fixed interest rates.
−Removed: For the three months ended March 31, 2021 and 2020, we did not engage in interest rate hedging activities.
+Added: For the three and six months ended June 30, 2021 and 2020, we did not engage in interest rate hedging activities.
Prepayment Risks
17 unchanged sentences
Market volatility has been particularly heightened due to the COVID-19 global pandemic.
−Removed: COVID-19 has disrupted economic activities and could have a continued significant adverse effect on economic and market conditions including limited lending from financial institutions, depressed asset values, and limited market liquidity.
+Added: The COVID-19 pandemic has disrupted economic activities and could have a continued significant adverse effect on economic and market conditions including limited lending from financial institutions, depressed asset values, and limited market liquidity.
We are subject to varying degrees of credit risk in connection with holding a portfolio of our target assets.
5 unchanged sentences
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.