8 unchanged sentences
We manage our debt portfolio to achieve an overall desired position of fixed and floating rates and may employ interest rate hedges as a tool to achieve that position.
−Removed: We have in the past entered into interest rate hedge agreements to limit our exposure to variable interest rate terms.
+Added: In April 2023, USF entered into two two-year rate cap agreements, which will each mature on April 30, 2025 with a total notional amount of $450 million.
+Added: The interest rate cap agreements will effectively cap the interest rate on approximately 24% of the principal amount of the Term Loan Facilities.
+Added: The Company’s maximum exposure to the variable component of interest on the Term Loan Facilities will be 5% on the notional amount covered by the interest rate cap agreements.
We may, in the future, again enter into interest rate hedges, the risks of which include changes in the interest rates affecting the fair value of such instruments, potential increases in interest expense due to market increases in floating interest rates and the creditworthiness of the counterparties.
−Removed: See Note 18, Subsequent Events, for a description of interest rate cap agreements entered into subsequent to April 1, 2023.
−Removed: Approximately 41% of the principal amount of our debt bore interest at floating rates based on LIBOR, SOFR or an alternative base rate, as defined in our credit agreements, as of April 1, 2023.
−Removed: A hypothetical 1% change in the applicable rate would cause the interest expense on our floating rate debt to change by approximately $22 million per year (see Note 9, Debt, in our consolidated financial statements).
−Removed: On March 5, 2021, the Intercontinental Exchange Benchmark Administration (“IBA”), the administrator of LIBOR, announced that it will cease publication of U.S.
−Removed: dollar LIBOR tenors as of June 30, 2023 (instead of December 31, 2021), for the most common tenors (overnight and one, three, six and twelve months) and it will cease publication of U.S.
−Removed: dollar LIBOR tenors for less common tenors (one week and two months) as well as all tenors of non-U.S.
−Removed: dollar LIBOR as of December 31, 2021.
−Removed: We are unable to predict the impact of using alternative reference rates and corresponding rate risk as of this time.
+Added: Following the Intercontinental Exchange Benchmark Administration’s announcement that it will cease publication of the U.S.
+Added: dollar LIBOR tenors as of June 30, 2023, we evaluated the impact of such announcement and the use of alternative reference rates on our existing contracts, including with respect to our term loan credit agreement.
+Added: On June 1, 2023, we entered into an amendment to our term loan credit agreement to replace the LIBOR-based interest rate option included in the term loan credit agreement with an interest rate option based upon SOFR.
+Added: SOFR is a relatively new reference rate and has a very limited history.
+Added: The future performance of SOFR cannot be predicted based on its limited historical performance.
+Added: As a result, we are unable to predict the impact of using alternative reference rates and corresponding rate risk as of this time.
+Added: After considering interest rate caps that fixed the interest rate on a total notional amount of $450 million of the current principal amount of the Term Loan Facilities, approximately 31% of the principal amount of our debt bore interest at floating rates based on SOFR or an alternative reference rate, as defined in our credit agreements, as of July 1, 2023.
+Added: A hypothetical 1% change in the
+Added: applicable rate would cause the interest expense on our floating rate debt to change by approximately $21 million per year (see Note 9, Debt, in our consolidated financial statements).
Fuel Price Risk
6 unchanged sentences
We also enter into forward purchase commitments for a portion of our projected diesel fuel requirements.
−Removed: As of April 1, 2023, we had diesel fuel forward purchase commitments totaling $34 million, which lock approximately 26% of our projected diesel fuel purchase needs through December 2023.
+Added: As of July 1, 2023, we had diesel fuel forward purchase commitments totaling $22 million, which lock approximately 26% of our projected diesel fuel purchase needs through December 2023.
Using current published market price projections for diesel and estimated fuel consumption needs, a hypothetical 10% unfavorable change in diesel prices from the market price could result in approximately $7 million in additional fuel cost on uncommitted volumes through December 2023.
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.