Quantitative and Qualitative Disclosures About Market Risk
−Removed: We are exposed to interest rate market risk due to the variable interest rate on the First Lien Term Loan described in “Item 2.
+Added: We are exposed to interest rate market risk due to the variable interest rate on the 2021 Term Loan described in “Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations— Liquidity and Capital Resources .”
−Removed: Interest rate risk represents our exposure to fluctuations in interest rates associated with the variable rate debt represented by the First Lien Term Loan, which has an outstanding balance of $867.9 million at September 30, 2020.
−Removed: We refinanced the First Lien Term Loan on February 20, 2020 which reduced the previous applicable margin by 50 basis points.
−Removed: The First Lien Term Loan now bears interest based, at our option, on either (1) LIBOR plus an applicable margin of 3.25% per annum, or (2) an alternate base rate plus an applicable margin of 2.25% per annum.
−Removed: At September 30, 2020, the interest rate on the First Lien Term Loan was 3.4%.
−Removed: Based on the September 30, 2020 balance outstanding, each 1% movement in interest rates will result in an approximately $8.7 million change in annual interest expense.
−Removed: We have not engaged in any hedging activities during the nine months ended September 30 , 2020.
+Added: Interest rate risk represents our exposure to fluctuations in interest rates associated with the variable rate debt represented by the 2021 Term Loan, which has an outstanding balance of $650.0 million and an interest rate of 3.45% at March 31, 2021.
+Added: Based on the March 31, 2021 balance outstanding, each 1% movement in interest rates will result in an approximately $6.5 million change in annual interest expense.
+Added: We have not engaged in any hedging activities during the three months ended March 31, 2021.
We do not expect to engage in any hedging activities with respect to the market risk to which we are exposed.
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.