Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risk represents the risk of loss that may affect us due to adverse changes in financial market prices and interest rates.

As of September 30, 2023, we had $140.0 million of outstanding borrowings under our amended 2021 Credit Agreement and available borrowing capacity under the 2021 Credit Agreement was $500.0 million.

In accordance with our amended 2021 Credit Agreement, the borrowings under the Revolving Credit Facility and the Term Loan A-1 bear interest, at the Company’s option, at a per annum rate of either (1) the Administrative Agent’s prime commercial lending rate (subject to certain higher rate determinations) (the “Base Rate”) plus a margin of 0.125% to 0.75% or (2) the one-, three-, six-, or, subject to approval by all lenders, twelve-month SOFR rate plus a margin of 1.125% to 1.75%. As of September 30, 2023, we have fully repaid amounts due under Term Loan A-2.

During the nine months ended September 30, 2023, the effective interest rate for our borrowings was 7.43%. Based on the aggregate outstanding principal balance under the 2021 Credit Agreement as of September 30, 2023, of $140.0 million, each quarter point change in interest rates would result in a $350,000 change in annual interest expense.