Company: SVV
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001883313-25-000101
Chunk: 76

Company: Savers Value Village, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 76
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ivative Financial Instruments for additional information.

46

Interest rate risk

Changes in interest rates affect the amount of interest due on our variable rate debt. As of September 27, 2025, we had variable rate borrowings on the 2025 Senior Secured Credit Facilities of $750 million and no advances under our 2025 Revolving Credit Facility. We currently use Term SOFR as a reference rate for our variable rate debt, and any future increases in Term SOFR will inherently result in an increase in interest expense and cash paid toward interest. 

We performed a sensitivity analysis to determine the effect of interest rate fluctuations on our interest expense. A hypothetical 1 percentage point increase in Term SOFR would result in an increase to interest expense of $7.5 million over 12 months based on amounts outstanding and interest rates in effect as of September 27, 2025.

To reduce our exposure to fluctuations in interest rates we have entered into interest rate swaps. These interest rate swaps reduce our exposure to increases in interest rates and effectively convert a portion of our floating-rate debt to a fixed-rate basis. In September 2025, we executed interest rate swaps that are scheduled to mature on June 29, 2029.

Foreign currency exchange risk

In addition to our U.S. business, we operate in Canada and Australia. Operations conducted entirely in each jurisdiction use that jurisdiction’s currency as their functional currency and changes in foreign exchange rates affect the translation of the results of these businesses into the USD, which is the reporting currency of the Company. For the thirty-nine weeks ended September 27, 2025, approximately 42.0% of our net sales were denominated in a currency other than the USD. For the thirty-nine weeks ended September 27, 2025, a hypothetical 10% strengthening of the USD to the CAD would decrease our net sales by $42.7 million, and a hypothetical 10% weakening of the USD to the CAD would increase our net sales by $52.2 million. A hypothetical 10% change in the relative fair value of the USD to the Australian Dollar (“AUD”) would not have a material impact on our operations. We will be susceptible to fluctuations in the USD compared to the CAD and the AUD if we do not hedge our exchange rate exposure. As such, we seek to manage the risk from changes in foreign currency exchange rates through the use of forward contracts, cross currency swaps or both. Forward contracts are maintained on a rolling 12-month basis. In September 202