Company: HOUS
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001398987-25-000116
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Company: Anywhere Real Estate Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 3
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Item 3.    Quantitative and Qualitative Disclosures about Market Risks.

We are exposed to market risk from changes in interest rates primarily through our senior secured debt. At September 30, 2025, our primary interest rate exposure was to interest rate fluctuations, specifically SOFR and ABR, due to their impact on our borrowings under the Revolving Credit Facility. We do not have significant exposure to foreign currency risk, nor do we expect to have significant exposure to foreign currency risk in the foreseeable future.

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We assess our market risk based on changes in interest rates utilizing a sensitivity analysis. The sensitivity analysis measures the potential impact on earnings, fair values and cash flows based on a hypothetical change (increase and decrease) in interest rates. We exclude the fair values of relocation receivables and advances and securitization borrowings from our sensitivity analysis because we believe the interest rate risk on these assets and liabilities is mitigated as the rate we earn on relocation receivables and advances and the rate we incur on our securitization borrowings are based on similar variable indices.

At September 30, 2025, we had variable interest rate debt outstanding under our Revolving Credit Facility of $415 million which consisted of $375 million under SOFR and $40 million under ABR. The weighted average interest rate with respect to the Revolving Credit Facility borrowings was 6.17% at September 30, 2025, which is based on Term SOFR plus a 10 basis point credit spread adjustment and ABR, plus (in each case) an additional margin subject to adjustment based on the current senior secured leverage ratio. Based on the September 30, 2025 senior secured leverage ratio, the SOFR and ABR margins were 1.75% and 0.75%, respectively. At September 30, 2025, the one-month SOFR was 4.13% and ABR was 7.25%; therefore, we have estimated that a 0.25% increase in both SOFR and ABR would have an approximately $1 million impact on our annual interest expense.