Company: BWMN
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001628280-25-012365
Chunk: 164

Company: Bowman Consulting Group Ltd.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 7A
Chunk 164
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Item 7A. Quantitative and Qualitative Disclosure About Market Risk

We are exposed to certain market risks from transactions that are entered into during the normal course of business. We have not entered into derivative financial instruments for trading purposes. We have no significant market risk exposure to interest rate changes related to the promissory notes issued as partial consideration for acquisitions since these contain fixed interest rates. Our only debt subject to interest rate risk is the Credit Agreement under which rates are tied to 

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Term SOFR (Secured Overnight Financing Rate), plus an applicable rate which varies between 6.91% and 8.70% based on our ratio of Funded Debt to EBITDA (as each is defined in the Credit Agreement). As of December 31, 2024, there was $37.0 million outstanding on the Credit Agreement. A one percentage point change in the assumed interest rate of the Credit Agreement would change our annual interest expense by approximately $0.3 million in 2024.

Our finance lease obligations with Honour and Enterprise were $28.3 million as of December 31, 2024. These finance lease obligations bear interest at a fixed rate. Accordingly, there is no exposure to market risk related to these obligations.