This excerpt taken from the EYE 10-K filed Mar 1, 2007.
We will have more indebtedness after the acquisition of IntraLase, which could adversely affect our cash flows and business.
In order to complete the acquisition, we anticipate arranging for and funding up to $900 million of new financing. Proceeds from the financing will be used to fund the cash consideration paid to IntraLase stockholders. Our debt outstanding as of December 31, 2006 was $851.1 million. As a result of the increase in debt, demands on our cash resources may increase after the completion of the acquisition. The increased levels of debt could, among other things:
· require us to dedicate a substantial portion of our cash flow from operations to payments on our debt, thereby reducing funds available for working capital, capital expenditures, acquisitions and other purposes;
· increase our vulnerability to, and limit our flexibility in planning for, adverse economic and industry conditions;
· affect our credit rating;
· limit our ability to obtain additional financing to fund future working capital, capital expenditures, additional acquisitions and other general corporate requirements;
· create competitive disadvantages compared to other companies with less indebtedness; and
· limit our ability to apply proceeds from an offering or asset sale to purposes other than the repayment of debt.