4 unchanged sentences
To mitigate the risks associated with future interest rate movements we have employed interest rate hedges to fix the rate on a portion of our outstanding borrowings for various periods.
−Removed: In February 2018, we entered into a LIBOR based interest rate swap on our term loan for a term of three years with a notional amount of $10 million for the first year and $50 million for the second and third years.
−Removed: We pay an effective interest rate of 2.54% plus our base margin on the debt matched to this swap.
In February 2019, we entered into a LIBOR based interest rate swap on our revolving loan for a term of three years with a notional amount of $75 million.
3 unchanged sentences
We pay an effective interest rate of 0.73% plus our base margin on the debt matched to this swap.
+Added: A hypothetical 1% increase to interest rates would have increased interest expense by approximately $2.9 million, and would have decreased our net income and operating cash flows by a comparable amount.
+Added: For additional information related to our debt and interest rate swap agreements, see Note (8) and Note (16), respectively, to our Consolidated Financial Statements contained in this report.
LIBOR is used as a reference rate for borrowings under our loan agreement and related interest rate swap agreements.
−Removed: LIBOR is expected to be phased out by the end of 2021, which is before the maturity of our loan agreement.
+Added: The LIBOR benchmark has been the subject of regulatory guidance and proposals for reform and replacement, with most LIBOR tenors, including those that we most commonly use, expected to no longer be available under our loan agreement after June 30, 2023.
+Added: In connection with our loan amendment in July 2021, language was added to the agreement to provide procedures for determining a replacement or alternative rate in the event that LIBOR becomes unavailable.
At this time, there is no definitive information regarding the future transition of LIBOR to a replacement rate;
−Removed: however, we continue to monitor the developments with respect to the potential discontinuance of LIBOR after 2021 and intend to work with our bank group to minimize the impact of such discontinuance on our financial condition and results of operations.
+Added: however, we continue to monitor the developments with respect to the potential discontinuance of LIBOR and intend to work with our bank group to minimize the impact of such discontinuance on our financial condition and results of operations.
The consequences of the discontinuance of LIBOR cannot be entirely predicted but could result in an increase in our variable rate debt.
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.