This excerpt taken from the AMED 10-K filed Feb 27, 2008.
The agreement governing our revolving credit facility contains, and future debt agreements may contain, various covenants that limit our discretion in the operation of our business.
Although we had no outstanding borrowings under our $100.0 million Revolving Credit Facility (Revolver) as of December 31, 2007 and had a minimum amount of indebtedness of $24.0 million related to promissory notes and capital leases, we might incur additional debt in the future. The agreement and instruments governing our Revolver contain, and the agreements and instruments governing future debt agreements may contain, various restrictive covenants that, among other things, require us to comply with or maintain certain financial tests and ratios that may restrict our ability to:
In addition, events beyond our control could affect our ability to comply with and maintain these financial tests and ratios. Any failure by us to comply with or maintain all applicable financial tests and ratios and to comply with all applicable covenants could result in an event of default with respect to our Revolver or any other future debt agreements. This could lead to the acceleration of the maturity of any outstanding loans and the termination of the commitments to make further extensions of credit. Even if we are able to comply with all applicable covenants, the restrictions on our ability to operate our business at our sole discretion could harm our business by, among other things, limiting our ability to take advantage of financing, mergers, acquisitions and other corporate opportunities.