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, 2022, we had 15 investments with an aggregate principal balance of $358.5 million, net of obligations under participation agreements and secured borrowing, that provide for interest income at an annual rate of LIBOR plus a spread, 13 of which are subject to a LIBOR floor.
+Added: As of June 30, 2022, we had 14 investments with an aggregate principal balance of $351.1 million, net of obligations under participation agreements and secured borrowing, that provide for interest income at an annual rate of LIBOR plus a spread, 12 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 $2.2 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 $3.2 million.
−Removed: Additionally, we had three investments with an aggregate principal balance of $52.6 million that provide for interest income at an annual rate of SOFR plus a spread, all of which were subject to a SOFR floor.
+Added: Additionally, we had four investments with an aggregate principal balance of $75.9 million that provide for interest income at an annual rate of SOFR plus a spread, all of which were subject to a SOFR floor.
A decrease of 100 basis points in SOFR would decrease our annual interest income by $0.7 million, and an increase of 100 basis points would increase our annual interest income by $0.8 million.
−Removed: Additionally, as of March 31, 2022, we had $31.8 million of borrowings outstanding under a mortgage loan payable that bear interest at an annual rate of LIBOR plus a spread that is collateralized by an office building;
+Added: Additionally, as of June 30, 2022, we had $31.5 million of borrowings outstanding under a mortgage loan payable that bear interest at an annual rate of LIBOR plus a spread that is collateralized by an office building;
a revolving line of credit with an outstanding balance of $48.8 million that bears interest at an annual rate of LIBOR plus a spread that is collateralized by $78.5 million of first mortgages;
5 unchanged sentences
The Alternative Reference Rates Committee, a steering committee comprised of large U.S.
−Removed: financial institutions convened by the U.S.
+Added: institutions convened by the U.S.
Federal Reserve, has recommended SOFR as a more robust reference rate alternative to U.S.
3 unchanged sentences
Given that SOFR is a secured rate backed by government securities, it will be a rate that does not take into account bank credit risk (as is the case with LIBOR).
−Removed: SOFR is therefore likely to be lower than LIBOR and is less likely to correlate with the funding costs of
−Removed: financial institutions.
+Added: SOFR is therefore likely to be lower than LIBOR and is less likely to correlate with the funding costs of financial institutions.
Whether or not SOFR attains market traction as a LIBOR replacement tool remains in question.
5 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, 2022 and 2021, we did not engage in interest rate hedging activities.
+Added: For the three and six months ended June 30, 2022 and 2021, we did not engage in interest rate hedging activities.
Prepayment Risks
24 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.