Sprouts Farmers Market 2013 Annual Report Download - page 87

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Table of Contents
Interest Rate Sensitivity
As described above under “Management’s Discusssion and Analysis—Liquidity and Capital Resources—Long-
Term Debt and
Credit Facilities,”
we have a Term Loan that bears interest at a rate based in part on LIBOR, the Federal Funds Rate, the Eurodollar
Rate or the prime rate, depending on our consolidated leverage ratio. Accordingly, we are exposed to fluctuations in interest rates.
Based on the $318.3 million principal outstanding under our Term Loan as of December 29, 2013, each hundred basis point
change in LIBOR, once LIBOR exceeds the LIBOR floor under our loan of 1.00%, would result in a change in interest expense by
$3.2 million annually.
This sensitivity analysis assumes our mix of financial instruments and all other variables will remain constant in future periods.
These assumptions are made in order to facilitate the analysis and are not necessarily indicative of our future intentions.
82
Item 7A.
Quantitative and Qualitative Disclosures about Market Risk