Quantitative and Qualitative Disclosures About Market Risk
+Added: Our operations expose us to a variety of market risks, including the effects of changes in interest rates.
+Added: We monitor and manage these financial exposures as an integral part of our overall risk management program.
Interest Rate Risk
−Removed: As of March 31, 2021, the Company’s financial instruments consisted of the following:
−Removed: cash and cash equivalents, loans receivable, and senior notes payable.
−Removed: Fair value approximates carrying value for all of these instruments.
−Removed: Loans receivable are originated at prevailing market rates and have an average life of approximately 8 months.
−Removed: Given the short-term nature of these loans, they are continually repriced at current market rates.
The Company’s outstanding debt under its revolving credit facility was $397.0 million at March 31, 2022.
−Removed: Interest on borrowings under this facility is based on the rate of LIBOR plus an applicable margin of 3.5%.
+Added: Interest on borrowings under this facility is based on the greater of 4.5% or one month LIBOR plus an applicable margin of 3.5%.
Based on the outstanding balance under the Company's revolving credit facility at March 31, 2022, a change of 1% in the LIBOR interest rate would cause a change in interest expense of approximately $4.0 million on an annual basis.
−Removed: Table o f C o ntent s
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.