Derivative Instruments

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

8. Derivative Instruments

The Company’s derivative instruments consist of interest rate swaps, which mitigate the exposure to the variable-rate debt by effectively converting the floating-rate payments to fixed-rate payments. The derivative financial instrument arrangements were entered into to manage the Company's interest rate risk related to its variable rate Term Loan Facility. During the nine months ended September 30, 2024, the Company entered into a forward starting interest rate swap. The interest rate swaps are measured at fair value and not designated as a hedge for accounting purposes; as such, any fair value changes are recorded in “Other (expense) / income, net” in the unaudited condensed consolidated statement of comprehensive loss in the respective period of the change.

The following table summarized the notional amount at inception and fair value of these instruments recognized as "Derivative financial assets" or "Derivative financial liabilities" in the unaudited condensed consolidated statement of financial position:


Derivative financial instrument	Fixed rate	Notional amount		Index	Effective date	Maturity Date	Fair value of asset / (liability) as at September 30, 2024			Fair value of asset as at December 31, 2023
Interest rate swap	2.1%	$	245,811	USD-1 month SOFR	March 31, 2022	March 31, 2026	$	4,794		$	10,427
Forward starting interest rate swap	3.3%	$	110,047	USD-1 month SOFR	March 31, 2026	December 31, 2027	$	(377	)	$	-

During the three months ended September 30, 2024 and 2023 the Company recognized a (loss) / gain of ($3,186) and $2,054, respectively, of which ($5,471) and ($682), respectively, is associated with remeasuring the derivative instrument to fair value at the end of the reporting period. The fair value remeasurement is netted by monthly cash receipts on the interest rate contracts for the three months ended September 30, 2024 and 2023 of $2,285 and $2,736, respectively.

During the nine months ended September 30, 2024 and 2023 the Company recognized a gain of $1,224 and $6,252, respectively, of which $6,010 and $1,268, respectively, is associated with remeasuring the derivative instrument to fair value at the end of the reporting period. The fair value remeasurement is netted by monthly cash receipts on the interest rate contracts for the nine months ended September 30, 2024 and 2023 of $7,234 and $7,520, respectively.

For further information regarding the fair value of the derivative instruments see discussion in Notes 12 and 14.