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Item 3 — Quantitative and Qualitative Disclosures About Market Risk
Landbridge Company LLC · 10-Q · Q2 FY2026 · Period ended Jun 30, 2026
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Interest Rate Risks
Our ability to borrow and the rates offered by lenders can be adversely affected by deterioration in the credit markets and/or deterioration of our credit profile rating. We may elect for outstanding borrowings under the 2025 Revolving Credit Facility to accrue interest at a rate based on either the Term SOFR, or the base rate, plus an applicable margin, which exposes us to interest rate risk to the extent we have borrowings outstanding under the 2025 Revolving Credit Facility.
As of June 30, 2026, we had $45.0 million of outstanding borrowings under the 2025 Revolving Credit Facility. We are obligated to pay interest at variable rates and other customary fees on borrowings under this facility. For the three and six months ended June 30, 2026, the 2025 Revolving Credit Facility had a weighted average interest rate of 5.81% and 5.96% respectively.
As of June 30, 2026, we also had aggregate principal amounts outstanding of $500.0 million under the Notes. Since our Notes bear interest at fixed rates and are carried at amortized cost, fluctuations in interest rates do not have any impact on our unaudited condensed consolidated financial statements. However, the fair value of the Notes will fluctuate with movements in market interest rates, increasing in periods of declining interest rates and declining in periods of increasing interest rates.
Refer to Note 7 — Debt within the notes to our unaudited condensed consolidated financial statements for more information.