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INTEREST RATE SWAPS

12 Months Ended

Dec. 31, 2023

INTEREST RATE SWAPS

INTEREST RATE SWAPS

NOTE 17. INTEREST RATE SWAPS

The Company has entered into interest rate swap agreements to hedge against changes in future cash flows resulting from fluctuating interest rates related to the below noted borrowings. The interest rate agreements were 100% effective during the years ended December 31, 2023, 2022, and 2021. Accordingly, the changes in fair value on the interest rate swaps have been classified in accumulated other comprehensive income (loss). The fair value of the interest rate swap agreements are included in other assets and accrued and other liabilities, respectively, on the consolidated balance sheets. Information related to the Company’s interest rate swap agreements are noted below (in thousands):


Hedged Item ⁽¹⁾		Effective Date		Maturity Date		Rate		Amount			Fair Value as of December 31, 2023
2026 Term Loan		3/10/2021		3/29/2024		0.12% + 0.10% + applicable spread		$	50,000		$	650
2026 Term Loan		3/29/2024		3/10/2026		1.44% + 0.10% + applicable spread		$	50,000		$	2,153
2026 Term Loan		8/31/2021		3/10/2026		0.70% + 0.10% + applicable spread		$	15,000		$	1,025
2026 Term Loan⁽²⁾		3/10/2026		3/10/2031		3.80% + 0.10% + applicable spread		$	40,000		$	(1,015)
2027 Term Loan		11/5/2021		3/29/2024		0.64% + 0.10% + applicable spread		$	100,000		$	1,172
2027 Term Loan		3/29/2024		1/31/2027		1.35% + 0.10% + applicable spread		$	100,000		$	5,840
2027 Term Loan⁽²⁾		1/31/2027		1/30/2032		3.75% + 0.10% + applicable spread		$	60,000		$	(1,253)
2028 Term Loan		9/30/2022		1/31/2028		3.78% + 0.10% + applicable spread		$	50,000		$	(433)
2028 Term Loan		9/30/2022		1/31/2028		3.78% + 0.10% + applicable spread		$	50,000		$	(442)
2028 Term Loan ⁽²⁾		1/31/2028		1/31/2033		3.81% + 0.10% + applicable spread		$	60,000		$	(1,119)
Credit Facility		1/31/2023		1/31/2030		3.27% + 0.10% + applicable spread		$	50,000		$	493
Credit Facility		1/31/2023		1/31/2030		3.26% + 0.10% + applicable spread		$	33,000		$	345
Credit Facility		1/31/2023		1/31/2030		3.36% + 0.10% + applicable spread		$	17,000		$	92
Credit Facility⁽²⁾		2/1/2024		1/31/2028		3.85% + 0.10% + applicable spread		$	50,000		$	(617)

⁽¹⁾	Effective September 30, 2022 the Company converted its existing interest rate swaps from 1-month LIBOR to SOFR.

⁽²⁾	During the year ended December 31, 2023, the Company entered into forward starting interest rate swaps to further fix interest rates through periods that the Company reasonably expects to extend its current term loans and Credit Facility.

The use of interest rate swap agreements carries risks, including the risk that the counterparties to these agreements are not able to perform. To mitigate this risk, the Company enters into interest rate swap agreements with counterparties with high credit ratings and with major financial institutions with which the Company and its affiliates may also have other financial relationships. The Company does not currently anticipate that any of the counterparties to the Company’s interest rate swap agreements will fail to meet their obligations. As of December 31, 2023 and 2022, there were no events of default related to the Company's interest rate swap agreements.