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Item 3 — Quantitative and Qualitative Disclosures About Market Risk
Pediatrix Medical Group, Inc. · 10-Q · Q2 FY2026 · Period ended Jun 30, 2026
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We are subject to market risk primarily from exposure to changes in interest rates based on our financing, investing and cash management activities. We intend to manage interest rate risk through the use of a combination of fixed rate and variable rate debt. We borrow under our Amended Credit Agreement at various interest rate options based on the Alternate Base Rate or SOFR rate depending on certain financial ratios. At June 30, 2026, we had an outstanding principal balance of $184.4 million on our Amended Credit Agreement under our Term A Loan. Considering the total outstanding balance, a 1% change in interest rates would result in an impact to income before taxes of approximately $1.8 million per year.