{"url_path":"/sec/vsnt/10-q/2026/item-3","section_key":"item-3","section_title":"Item 3 Quantitative and Qualitative Disclosures about Market Risk.","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-14","source_url":"https://www.sec.gov/Archives/edgar/data/2067876/0002067876-26-000027-index.html","accession_number":"0002067876-26-000027","cik":"0002067876","ticker":"VSNT","issuer_name":"Versant Media Group, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/2067876/0002067876-26-000027-index.html","primary_entity_key":"0002067876","primary_entity_name":"Versant Media Group, Inc."},"word_count":345,"has_tables":true,"body_markdown":"Item 3. Quantitative and Qualitative Disclosures about Market Risk.\n\nOur exposure to market risk primarily relates to interest rate changes on our debt obligations.\n\nInterest Rate Risk\n\nOur debt obligations consist of our $1.0 billion in aggregate principal amount 7.250% Senior Notes due in January 2031 and $2.0 billion of borrowings under Term Loans due January 2031, which bear interest at a benchmark rate plus a borrowing margin. As a result, we are exposed to market risk of adverse changes in interest rates related to these arrangements.\n\nIn order to manage the cost and volatility relating to the interest cost of our variable rate debt, we use interest rate risk management derivative transactions in accordance with our policy. We do not engage in any speculative or leveraged derivative transactions. During the three months ended March 31, 2026, we entered into interest rate swaps with a notional amount of $1.0 billion, which effectively convert a portion of our variable-rate borrowings to fixed rates. These interest rate swaps have been designated as cash flow hedges. The effect of our interest rate derivative financial instruments to our consolidated interest expense for the three months ended March 31, 2026 was not material.\n\nAs of March 31, 2026, approximately 67% of the aggregate principal amount of our total debt portfolio consisted of fixed-rate indebtedness, including the effect of interest rate swap agreements. The impact of a 100 basis point change in interest rates affecting our floating rate debt would result in a change in our interest expense, including the effects of our interest rate swap agreements, of approximately $3 million.\n\nCounterparty Credit Risk Management\n\nWe manage the credit risks associated with our derivative financial instruments through diversification and evaluation and monitoring of creditworthiness of counterparties. Although we may be exposed to losses in the event of nonperformance by counterparties, we do not expect such losses, if any, to be significant. As of March 31, 2026, we were not required to post collateral under the terms of our agreements, nor did we hold any collateral under the terms of our agreements."}