Aarons 2014 Annual Report Download - page 53

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43
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
In connection with the Progressive acquisition, in April 2014, the Company amended its revolving credit agreement, amended
certain financing agreements and entered into two new note purchase agreements, which are discussed in further detail in Note
6 to the consolidated financial statements.
As of December 31, 2014, we had $400 million of senior unsecured notes outstanding at a weighted-average fixed rate of 4.6%.
Amounts outstanding under our revolving credit agreement as of December 31, 2014 consisted of $121.9 million in term loans
and $69.1 million of revolving credit balances. Borrowings under the revolving credit agreement are indexed to LIBOR or the
prime rate, which exposes us to the risk of increased interest costs if interest rates rise. Based on the Company's variable-rate
debt outstanding as of December 31, 2014, a hypothetical 1.0% increase or decrease in interest rates would have increased or
decreased interest expense by $1.9 million.
We do not use any significant market risk sensitive instruments to hedge commodity, foreign currency or other risks, and hold
no market risk sensitive instruments for trading or speculative purposes.