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Item 3 — Quantitative and Qualitative Disclosures About Market Risk
U S Physical Therapy Inc /nv · 10-Q · Q2 FY2026 · Period ended Jun 30, 2026
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We maintain an interest rate swap arrangement which is considered a derivative instrument. Our indebtedness as of June 30, 2026, was the outstanding balance of seller notes from our acquisitions of $1.5
million, and an outstanding balance on our term note related to the Senior Credit Facility of $221.0 million. The Revolving Facility within our Senior Credit Facilities has a balance of $46.0 million as of June 30, 2026, and is subject to fluctuating
interest rates. A 1% change in the interest rate would result in a $1.0 million change in interest expense on the Senior Credit Facilities on an annualized basis. See Note 9 to our consolidated financial statements included in Item 1.