7 unchanged sentences
We expect to replace variable rate debt on a regular basis with fixed rate, long-term debt to finance our assets and operations.
−Removed: As of June 30, 2022, we had $100.0 million of borrowings outstanding under our Amended Facility, none of which were subject to interest rate caps.
−Removed: See “Note 8 - Derivative Financial Instruments” in our condensed notes to consolidated financial statements for more information regarding our prior interest rate cap.
+Added: As of September 30, 2022, we had $210.0 million of borrowings outstanding under our Amended Facility, none of which were subject to interest rate caps.
Amounts borrowed under our Amended Facility bear interest at a variable rate based on SOFR plus an applicable SOFR margin.
−Removed: The weighted average interest rate on borrowings outstanding under our Amended Facility was 2.8% as of June 30, 2022.
−Removed: If the SOFR rate were to fluctuate by 0.25%, interest expense would increase or decrease, depending on rate movement, future earnings and cash flows by approximately $0.3 million annually on the total of the outstanding balances on our Amended Facility as of June 30, 2022.
+Added: The weighted average interest rate on borrowings outstanding under our Amended Facility was 4.0% as of September 30, 2022.
+Added: If the SOFR rate were to fluctuate by 0.25%, interest expense would increase or decrease, depending on rate movement, future earnings and cash flows by approximately $0.5 million annually on the total of the outstanding balances on our Amended Facility as of September 30, 2022.
We expect that all LIBOR settings relevant to us will cease to be published or will no longer be representative after June 30, 2023.
1 unchanged sentence
If a contract is not transitioned to an alternative variable rate and LIBOR is discontinued, the impact is likely to vary by contract.
−Removed: As of June 30, 2022, each of the agreements governing our variable rate debt either have been transitioned to SOFR or provide for the replacement of LIBOR if it becomes unavailable during the term of such agreement.
+Added: As of September 30, 2022, each of the agreements governing our variable rate debt either have been transitioned to SOFR or provide for the replacement of LIBOR if it becomes unavailable during the term of such agreement.
The discontinuation of LIBOR will not affect our ability to borrow or maintain already outstanding borrowings or swaps, but as our contracts indexed to LIBOR are converted to SOFR, the differences between LIBOR and SOFR, plus the recommended spread adjustment, could result in interest costs that are higher than if LIBOR remained available.
−Removed: Additionally, although SOFR is the ARRC’s recommended replacement rate, it is also possible that lenders may instead choose alternative replacement rates that may differ from LIBOR in ways similar to SOFR or in ways that would result in higher interest costs for us.
+Added: Additionally, although SOFR is the recommended replacement rate of the Alternative Reference Rates Committee, it is also possible that lenders may instead choose alternative replacement rates that may differ from LIBOR in ways similar to SOFR or in ways that would result in higher interest costs for us.
It is not yet possible to predict the magnitude of LIBOR’s end on our borrowing costs given the remaining uncertainty about which rates will replace LIBOR.
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.