1 unchanged sentence
Our principal exposure to market risk relates to changes in interest rates.
−Removed: We invest our cash and cash equivalents and short-term investments in money market funds and short-term corporate and municipal bonds.
−Removed: As of September 30, 2022, we held $66.5 million in cash and cash equivalents and $28.9 million in held-to-maturity investments.
+Added: We invest our cash and cash equivalents in money market funds.
+Added: As of September 30, 2023, we held $151.5 million in cash and cash equivalents.
During the fiscal year ended September 30, 2023, we earned interest income of $5.9 million.
−Removed: As we have a restrictive investment policy, our financial exposure to fluctuations in interest rates related to our interest income is expected to remain low.
−Removed: We do not believe that the value or liquidity of our cash and cash equivalents and held-to-maturity investments have been significantly impacted by current market events.
−Removed: On May 12, 2021, we entered into a credit agreement to finance the Avondale property through a $31.2 million term loan that bears interest at the rate of LIBOR plus 2.0% with a maturity of seven years.
−Removed: As of September 30, 2022, the fair value of our long-term debt was $30.1 million and bears interest on the outstanding principal amount at a rate equal to the LIBOR plus 2.0%, which was 4.56% as of September 30, 2022.
−Removed: On April 14, 2022, we entered into a credit agreement to finance the Lisle Campus through a $38.0 million term loan that bears interest at the rate of SOFR plus 2.0% with a maturity of seven years.
−Removed: As of September 30, 2022, the fair value of our long-term debt was $38.0 million and bears interest on the outstanding principal amount at a rate equal to the SOFR plus 2.0%, which was 4.51% as of September 30, 2022.
−Removed: We believe the carrying value of the debt approximates fair value as the interest rate is a floating rate equal to the LIBOR or SOFR plus 2.0%, which is representative of market rates for similar instruments.
−Removed: It is anticipated that the fair market value of our debt will continue to be immaterially affected by fluctuations in interest rates and we do not believe that the value of our debt has been significantly impacted by current market events.
−Removed: The variable rate of interest on our long-term debt can expose us to interest rate volatility due to changes in LIBOR and SOFR.
+Added: As we have a conservative investment policy, our financial exposure to fluctuations in interest rates related to our interest income is expected to remain low.
+Added: We do not believe that the value or liquidity of our cash and cash equivalents and investments have been significantly impacted by current market events.
+Added: On May 12, 2021, we entered into a credit agreement to finance the UTI Avondale, Arizona campus through a $31.2 million term loan that bore interest at the rate of LIBOR plus 2.0% with a maturity of seven years.
+Added: On April 3, 2023, in connection with applying the guidance in Accounting Standards Update 2020-04, Reference Rate Reform (Topic 848):
+Added: Facilitation of the Effects of Reference Rate Reform on Financial Reporting , we executed an amendment for our Avondale term loan to convert the stated rate from LIBOR to Term SOFR.
+Added: As of September 30, 2023, the fair value of the Avondale term loan was $29.3
+Added: million and bears interest on the outstanding principal amount at a rate equal to Term SOFR plus 2.0% and a tranche adjustment of 0.046%, which was 7.38% as of September 30, 2023.
+Added: On April 14, 2022, we entered into a credit agreement to finance the UTI Lisle, Illinois campus through a $38.0 million term loan that bears interest at the rate of Term SOFR plus 2.0% with a maturity of seven years.
+Added: As of September 30, 2023, the fair value of the Lisle term loan was $37.7 million and bears interest on the outstanding principal amount at a rate equal to Term SOFR plus 2.0%, which was 7.33% as of September 30, 2023.
+Added: We believe the carrying value of the Avondale and Lisle term loans approximate fair value as the interest rate is a floating rate equal to Term SOFR plus 2.0%, which is representative of market rates for similar instruments.
+Added: It is anticipated that the fair market value of our Avondale and Lisle term loans will continue to be immaterially affected by fluctuations in interest rates and we do not believe that the value of this debt has been significantly impacted by current market events.
+Added: The variable rate of interest on our long-term debt can expose us to interest rate volatility due to changes in Term SOFR.
To mitigate this exposure, we entered into interest rate swap agreements that effectively fix the interest rates on 50% of the principal amounts of the term loans at 1.45% and 4.69% for the entire loan term on our Avondale debt and Lisle debt, respectively.
+Added: On November 18, 2022, we entered into a $100.0 million senior secured revolving credit facility that bears variable interest in a maturity of three years.
+Added: On November 28, 2022, we drew $90.0 million from the credit facility in support of the closing of the Concorde acquisition.
During the fiscal year ended September 30, 2023, we recorded interest expense of $9.7 million on our outstanding debt.
−Removed: Assuming all terms of our outstanding long-term debt remained the same, a hypothetical 10.0% change (up or down) in the
−Removed: one-month LIBOR would result in a $3.4 million change to our annual interest expense for the portion of the long-term debt not hedged by the interest rate swap agreement.
+Added: Assuming all terms of our outstanding long-term debt remained the same, a hypothetical 10.0% change (up or down) in the variable rates would result in a $12.3 million change to our annual interest expense for the portion of the long-term debt not hedged by the interest rate swap agreement.
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.