Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Our exposure to market risk relates to fluctuations in interest rates from borrowings under the Senior Credit Facility. The line of credit under this facility is subject to an interest rate equal to the WSJ prime rate plus a margin of 0.50%, with a 3.50% interest rate floor. There were no borrowings against this line of credit at March 31, 2022 or December 31, 2021. The Building Term Note bears interest at a variable rate equal to the one month ICE LIBOR index plus a margin of 2.45% per annum. However, the Company entered into an interest rate swap transaction with Hancock Whitney Bank effectively fixing the interest rate for the Building Term Note at 4.68%.
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