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AMT » Topics » Substantial leverage and debt service obligations may adversely affect us.

This excerpt taken from the AMT 10-Q filed May 8, 2009.

Substantial leverage and debt service obligations may adversely affect us.

We have a substantial amount of indebtedness. As of March 31, 2009, we had approximately $4.3 billion of consolidated debt, and the ability to borrow additional amounts of approximately $495.2 million under the Revolving Credit Facility. Our substantial level of indebtedness increases the possibility that we may be unable to generate cash sufficient to pay when due the principal of, interest on, or other amounts due with respect to our indebtedness. In addition, we may draw down the Revolving Credit Facility, which has the effect of increasing our indebtedness. We are also permitted, subject to certain restrictions under our existing indebtedness, to obtain additional long-term debt and working capital lines of credit to meet future financing needs. This would have the effect of increasing our total leverage.

Our substantial leverage could have significant negative consequences on our financial condition and results of operations, including:

 

  •  

impairing our ability to meet one or more of the financial ratio covenants contained in our debt agreements or to generate cash sufficient to pay interest or principal, which could result in an acceleration of some or all of our outstanding debt and the loss of towers subject to our Securitization in the event that an uncured default occurs;

 

  •  

increasing our vulnerability to general adverse economic and industry conditions;

 

  •  

limiting our ability to obtain additional debt or equity financing;

 

  •  

requiring the dedication of a substantial portion of our cash flow from operations to service our debt, thereby reducing the amount of our cash flow available for other purposes, including capital expenditures;

 

  •  

requiring us to sell debt or equity securities or to sell some of our core assets, possibly on unfavorable terms, to meet payment obligations;

 

  •  

limiting our flexibility in planning for, or reacting to, changes in our business and the industries in which we compete;

 

  •  

limiting our ability to repurchase our Common Stock; and

 

  •  

placing us at a possible competitive disadvantage with less leveraged competitors and competitors that may have better access to capital resources.

 

35

Table of Contents
These excerpts taken from the AMT 10-K filed Feb 26, 2009.

Substantial leverage and debt service obligations may adversely affect us.

We have a substantial amount of indebtedness. As of December 31, 2008, we had approximately $4.3 billion of consolidated debt, and the ability to borrow additional amounts of approximately $495.1 million under the Revolving Credit Facility. Our substantial level of indebtedness increases the possibility that we may be unable to generate cash sufficient to pay when due the principal of, interest on, or other amounts due with respect to our indebtedness. In addition, we may draw down the Revolving Credit Facility, which has the effect of increasing our indebtedness. We are also permitted, subject to certain restrictions under our existing indebtedness, to obtain additional long-term debt and working capital lines of credit to meet future financing needs. This would have the effect of increasing our total leverage.

Our substantial leverage could have significant negative consequences on our financial condition and results of operations, including:

 

  •  

impairing our ability to meet one or more of the financial ratio covenants contained in our debt agreements or to generate cash sufficient to pay interest or principal, which could result in an acceleration of some or all of our outstanding debt and the loss of towers subject to our securitization transaction in the event that an uncured default occurs;

 

  •  

increasing our vulnerability to general adverse economic and industry conditions;

 

  •  

limiting our ability to obtain additional debt or equity financing;

 

  •  

requiring the dedication of a substantial portion of our cash flow from operations to service our debt, thereby reducing the amount of our cash flow available for other purposes, including capital expenditures;

 

11

Table of Contents
  •  

requiring us to sell debt or equity securities or to sell some of our core assets, possibly on unfavorable terms, to meet payment obligations;

 

  •  

limiting our flexibility in planning for, or reacting to, changes in our business and the industries in which we compete;

 

  •  

limiting our ability to repurchase our Common Stock; and

 

  •  

placing us at a possible competitive disadvantage with less leveraged competitors and competitors that may have better access to capital resources.

Substantial leverage and debt service obligations may adversely affect
us.

We have a substantial amount of indebtedness. As of December 31, 2008, we had approximately $4.3 billion of consolidated
debt, and the ability to borrow additional amounts of approximately $495.1 million under the Revolving Credit Facility. Our substantial level of indebtedness increases the possibility that we may be unable to generate cash sufficient to pay when due
the principal of, interest on, or other amounts due with respect to our indebtedness. In addition, we may draw down the Revolving Credit Facility, which has the effect of increasing our indebtedness. We are also permitted, subject to certain
restrictions under our existing indebtedness, to obtain additional long-term debt and working capital lines of credit to meet future financing needs. This would have the effect of increasing our total leverage.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">Our substantial leverage could have significant negative consequences on our financial condition and results of operations, including:

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







 • 

impairing our ability to meet one or more of the financial ratio covenants contained in our debt agreements or to generate cash sufficient to pay interest or
principal, which could result in an acceleration of some or all of our outstanding debt and the loss of towers subject to our securitization transaction in the event that an uncured default occurs;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







 • 

increasing our vulnerability to general adverse economic and industry conditions;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







 • 

limiting our ability to obtain additional debt or equity financing;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







 • 

requiring the dedication of a substantial portion of our cash flow from operations to service our debt, thereby reducing the amount of our cash flow available for
other purposes, including capital expenditures;

 


11






Table of Contents








 • 

requiring us to sell debt or equity securities or to sell some of our core assets, possibly on unfavorable terms, to meet payment obligations;

 







 • 

limiting our flexibility in planning for, or reacting to, changes in our business and the industries in which we compete;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







 • 

limiting our ability to repurchase our Common Stock; and

 







 • 

placing us at a possible competitive disadvantage with less leveraged competitors and competitors that may have better access to capital resources.

This excerpt taken from the AMT 10-Q filed Nov 6, 2008.

Substantial leverage and debt service obligations may adversely affect us.

We have a substantial amount of indebtedness. As of September 30, 2008, we had approximately $4.4 billion of consolidated debt, and the ability to borrow additional amounts of approximately $543.1 million under the Revolving Credit Facility. Our substantial level of indebtedness increases the possibility that we may be unable to generate cash sufficient to pay when due the principal of, interest on, or other amounts due with respect to our indebtedness. In addition, we draw down the Revolving Credit Facility in the ordinary course, which has the effect of increasing our indebtedness. We are also permitted, subject to certain restrictions under our existing indebtedness, to obtain additional long-term debt and working capital lines of credit to meet future financing needs. This would have the effect of increasing our total leverage.

Our substantial leverage could have significant negative consequences on our financial condition and results of operations, including:

 

  •  

impairing our ability to meet one or more of the financial ratio covenants contained in our debt agreements or to generate cash sufficient to pay interest or principal, which could result in an acceleration of some or all of our outstanding debt and the loss of towers subject to the securitization transaction in the event that an uncured default occurs;

 

  •  

increasing our vulnerability to general adverse economic and industry conditions;

 

  •  

limiting our ability to obtain additional debt or equity financing;

 

  •  

requiring the dedication of a substantial portion of our cash flow from operations to service our debt, thereby reducing the amount of our cash flow available for other purposes, including capital expenditures;

 

  •  

requiring us to sell debt or equity securities or to sell some of our core assets, possibly on unfavorable terms, to meet payment obligations;

 

  •  

limiting our flexibility in planning for, or reacting to, changes in our business and the industries in which we compete;

 

45

Table of Contents
  •  

limiting our ability to repurchase our Common Stock; and

 

  •  

placing us at a possible competitive disadvantage with less leveraged competitors and competitors that may have better access to capital resources.

This excerpt taken from the AMT 10-Q filed Aug 6, 2008.

Substantial leverage and debt service obligations may adversely affect us.

We have a substantial amount of indebtedness. As of June 30, 2008, we had approximately $4.4 billion of consolidated debt. Our substantial level of indebtedness increases the possibility that we may be unable to generate cash sufficient to pay when due the principal of, interest on, or other amounts due with respect to our indebtedness. In addition, we draw down our Revolving Credit Facility in the ordinary course, which has the effect of increasing our indebtedness. We are also permitted, subject to certain restrictions under our existing indebtedness, to obtain additional long-term debt and working capital lines of credit to meet future financing needs. This would have the effect of increasing our total leverage.

Our substantial leverage could have significant negative consequences on our financial condition and results of operations, including:

 

  •  

impairing our ability to meet one or more of the financial ratio covenants contained in our debt agreements or to generate cash sufficient to pay interest or principal, which could result in an acceleration of some or all of our outstanding debt and the loss of towers subject to the securitization transaction in the event that an uncured default occurs;

 

  •  

increasing our vulnerability to general adverse economic and industry conditions;

 

  •  

limiting our ability to obtain additional debt or equity financing;

 

  •  

requiring the dedication of a substantial portion of our cash flow from operations to service our debt, thereby reducing the amount of our cash flow available for other purposes, including capital expenditures;

 

  •  

requiring us to sell debt or equity securities or to sell some of our core assets, possibly on unfavorable terms, to meet payment obligations;

 

  •  

limiting our flexibility in planning for, or reacting to, changes in our business and the industries in which we compete;

 

  •  

limiting our ability to repurchase our Class A common stock; and

 

  •  

placing us at a possible competitive disadvantage with less leveraged competitors and competitors that may have better access to capital resources.

This excerpt taken from the AMT 10-Q filed May 8, 2008.

Substantial leverage and debt service obligations may adversely affect us.

We have a substantial amount of indebtedness. As of March 31, 2008, we had approximately $4.4 billion of consolidated debt. Our substantial level of indebtedness increases the possibility that we may be unable to generate cash sufficient to pay when due the principal of, interest on, or other amounts due with respect to our indebtedness. In addition, we draw down our Revolving Credit Facility in the ordinary course, which has the effect of increasing our indebtedness. We are also permitted, subject to certain restrictions under our existing indebtedness, to obtain additional long-term debt and working capital lines of credit to meet future financing needs. This would have the effect of increasing our total leverage.

 

34

Table of Contents

Our substantial leverage could have significant negative consequences on our financial condition and results of operations, including:

 

  •  

impairing our ability to meet one or more of the financial ratio covenants contained in our debt agreements or to generate cash sufficient to pay interest or principal, which could result in an acceleration of some or all of our outstanding debt and the loss of towers subject to the securitization transaction in the event that an uncured default occurs;

 

  •  

increasing our vulnerability to general adverse economic and industry conditions;

 

  •  

limiting our ability to obtain additional debt or equity financing;

 

  •  

requiring the dedication of a substantial portion of our cash flow from operations to service our debt, thereby reducing the amount of our cash flow available for other purposes, including capital expenditures;

 

  •  

requiring us to sell debt or equity securities or to sell some of our core assets, possibly on unfavorable terms, to meet payment obligations;

 

  •  

limiting our flexibility in planning for, or reacting to, changes in our business and the industries in which we compete;

 

  •  

limiting our ability to repurchase our Class A common stock; and

 

  •  

placing us at a possible competitive disadvantage with less leveraged competitors and competitors that may have better access to capital resources.

These excerpts taken from the AMT 10-K filed Mar 14, 2008.

Substantial leverage and debt service obligations may adversely affect us.

We have a substantial amount of indebtedness. As of December 31, 2007, we had approximately $4.3 billion of consolidated debt. Our substantial level of indebtedness increases the possibility that we may be unable to generate cash sufficient to pay when due the principal of, interest on, or other amounts due with respect to our indebtedness. In addition, we draw down our Revolving Credit Facility in the ordinary course, which has the effect of increasing our indebtedness. We are also permitted, subject to certain restrictions under our existing indebtedness, to obtain additional long-term debt and working capital lines of credit to meet future financing needs. This would have the effect of increasing our total leverage.

Our substantial leverage could have significant negative consequences on our financial condition and results of operations, including:

 

  •  

impairing our ability to meet one or more of the financial ratio covenants contained in our debt agreements or to generate cash sufficient to pay interest or principal, which could result in an acceleration of some or all of our outstanding debt and the loss of towers subject to the Securitization in the event that an uncured default occurs;

 

  •  

increasing our vulnerability to general adverse economic and industry conditions;

 

  •  

limiting our ability to obtain additional debt or equity financing;

 

  •  

requiring the dedication of a substantial portion of our cash flow from operations to service our debt, thereby reducing the amount of our cash flow available for other purposes, including capital expenditures;

 

  •  

requiring us to sell debt or equity securities or to sell some of our core assets, possibly on unfavorable terms, to meet payment obligations;

 

  •  

limiting our flexibility in planning for, or reacting to, changes in our business and the industries in which we compete;

 

  •  

limiting our ability to repurchase our Class A common stock; and

 

  •  

placing us at a possible competitive disadvantage with less leveraged competitors and competitors that may have better access to capital resources.

 

11

Table of Contents

Substantial leverage and debt service obligations
may adversely affect us.

We have a substantial amount of indebtedness. As of December 31, 2007, we had approximately $4.3
billion of consolidated debt. Our substantial level of indebtedness increases the possibility that we may be unable to generate cash sufficient to pay when due the principal of, interest on, or other amounts due with respect to our indebtedness. In
addition, we draw down our Revolving Credit Facility in the ordinary course, which has the effect of increasing our indebtedness. We are also permitted, subject to certain restrictions under our existing indebtedness, to obtain additional long-term
debt and working capital lines of credit to meet future financing needs. This would have the effect of increasing our total leverage.

Our
substantial leverage could have significant negative consequences on our financial condition and results of operations, including:

 







 • 

impairing our ability to meet one or more of the financial ratio covenants contained in our debt agreements or to generate cash sufficient to pay interest or
principal, which could result in an acceleration of some or all of our outstanding debt and the loss of towers subject to the Securitization in the event that an uncured default occurs;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







 • 

increasing our vulnerability to general adverse economic and industry conditions;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







 • 

limiting our ability to obtain additional debt or equity financing;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







 • 

requiring the dedication of a substantial portion of our cash flow from operations to service our debt, thereby reducing the amount of our cash flow available for
other purposes, including capital expenditures;

 







 • 

requiring us to sell debt or equity securities or to sell some of our core assets, possibly on unfavorable terms, to meet payment obligations;

 







 • 

limiting our flexibility in planning for, or reacting to, changes in our business and the industries in which we compete;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







 • 

limiting our ability to repurchase our Class A common stock; and

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







 • 

placing us at a possible competitive disadvantage with less leveraged competitors and competitors that may have better access to capital resources.

 


11






Table of Contents


This excerpt taken from the AMT 10-Q filed Nov 9, 2007.

Substantial leverage and debt service obligations may adversely affect us.

We have a substantial amount of indebtedness. As of September 30, 2007, we had approximately $4.0 billion of consolidated debt. Our substantial level of indebtedness increases the possibility that we may be unable to generate cash sufficient to pay when due the principal of, interest on, or other amounts due with respect to our indebtedness. We are also permitted, subject to certain restrictions under our existing indebtedness, to obtain additional long-term debt and working capital lines of credit to meet future financing needs. This would have the effect of increasing our total leverage.

Our substantial leverage could have significant negative consequences on our financial condition and results of operations, including:

 

  •  

impairing our ability to meet one or more of the financial ratio covenants contained in our debt agreements or to generate cash sufficient to pay interest or principal, which events could result in an acceleration of some or all of our outstanding debt and the loss of towers subject to the Securitization in the event that an uncured default occurs;

 

  •  

increasing our vulnerability to general adverse economic and industry conditions;

 

  •  

limiting our ability to obtain additional debt or equity financing;

 

  •  

requiring the dedication of a substantial portion of our cash flow from operations to service our debt, thereby reducing the amount of our cash flow available for other purposes, including capital expenditures;

 

  •  

requiring us to sell debt or equity securities or to sell some of our core assets, possibly on unfavorable terms, to meet payment obligations;

 

  •  

limiting our flexibility in planning for, or reacting to, changes in our business and the industries in which we compete;

 

  •  

limiting our ability to repurchase our Class A common stock; and

 

  •  

placing us at a possible competitive disadvantage with less leveraged competitors and competitors that may have better access to capital resources.

This excerpt taken from the AMT 10-Q filed Aug 7, 2007.

Substantial leverage and debt service obligations may adversely affect us.

We have a substantial amount of indebtedness. As of June 30, 2007, we had approximately $4.0 billion of consolidated debt. Our substantial level of indebtedness increases the possibility that we may be unable to generate cash sufficient to pay the principal, interest, or other amounts when due. Subject to certain restrictions under our existing indebtedness, we may also obtain additional long-term debt and working capital lines of credit to meet future financing needs. This may have the effect of increasing our total leverage.

Our substantial leverage could have significant negative consequences on our financial condition and results of operations, including:

 

  •  

impairing our ability to meet one or more of the financial ratio covenants contained in our debt agreements or to generate cash sufficient to pay interest or principal, which events could result in an acceleration of some or all of our outstanding debt and the loss of towers subject to the Securitization in the event that an uncured default occurs;

 

  •  

increasing our vulnerability to general adverse economic and industry conditions;

 

  •  

limiting our ability to obtain additional debt or equity financing;

 

  •  

requiring the dedication of a substantial portion of our cash flow from operations to service our debt, thereby reducing the amount of our cash flow available for other purposes, including capital expenditures;

 

  •  

requiring us to sell debt or equity securities or to sell some of our core assets, possibly on unfavorable terms, to meet payment obligations;

 

  •  

limiting our flexibility in planning for, or reacting to, changes in our business and the industries in which we compete;

 

  •  

limiting our ability to repurchase our Class A common stock; and

 

  •  

placing us at a possible competitive disadvantage with less leveraged competitors and competitors that may have better access to capital resources.

This excerpt taken from the AMT 10-Q filed May 8, 2007.

Substantial leverage and debt service obligations may adversely affect us.

 

We have a substantial amount of indebtedness. As of March 31, 2007, we had approximately $3.6 billion of consolidated debt. Our substantial level of indebtedness increases the possibility that we may be unable to generate cash sufficient to pay the principal, interest, or other amounts when due. Subject to certain restrictions under our existing indebtedness, we may also obtain additional long-term debt and working capital lines of credit to meet future financing needs. This may have the effect of increasing our total leverage.

 

Our substantial leverage could have significant negative consequences on our financial condition and results of operations, including:

 

  •  

impairing our ability to meet one or more of the financial ratio covenants contained in our debt agreements or to generate cash sufficient to pay interest or principal, which events could result in an acceleration of some or all of our outstanding debt in the event that an uncured default occurs;

 

  •  

increasing our vulnerability to general adverse economic and industry conditions;

 

  •  

limiting our ability to obtain additional debt or equity financing;

 

  •  

requiring the dedication of a substantial portion of our cash flow from operations to service our debt, thereby reducing the amount of our cash flow available for other purposes, including capital expenditures;

 

  •  

requiring us to sell debt or equity securities or to sell some of our core assets, possibly on unfavorable terms, to meet payment obligations;

 

  •  

limiting our flexibility in planning for, or reacting to, changes in our business and the industries in which we compete; and

 

  •  

placing us at a possible competitive disadvantage with less leveraged competitors and competitors that may have better access to capital resources.

 

This excerpt taken from the AMT 10-K filed Feb 28, 2007.

Substantial leverage and debt service obligations may adversely affect us.

 

We have a substantial amount of indebtedness. As of December 31, 2006, we had approximately $3.5 billion of consolidated debt. Our substantial level of indebtedness increases the possibility that we may be unable to generate cash sufficient to pay the principal, interest, or other amounts when due. Subject to certain

 

12

Table of Contents

restrictions under our existing indebtedness, we may also obtain additional long-term debt and working capital lines of credit to meet future financing needs. This may have the effect of increasing our total leverage.

 

Our substantial leverage could have significant negative consequences on our financial condition and results of operations, including:

 

  •  

impairing our ability to meet one or more of the financial ratio covenants contained in our debt agreements or to generate cash sufficient to pay interest or principal, which events could result in an acceleration of some or all of our outstanding debt in the event that a uncured default occurs;

 

  •  

increasing our vulnerability to general adverse economic and industry conditions;

 

  •  

limiting our ability to obtain additional debt or equity financing;

 

  •  

requiring the dedication of a substantial portion of our cash flow from operations to service our debt, thereby reducing the amount of our cash flow available for other purposes, including capital expenditures;

 

  •  

requiring us to sell debt or equity securities or to sell some of our core assets, possibly on unfavorable terms, to meet payment obligations;

 

  •  

limiting our flexibility in planning for, or reacting to, changes in our business and the industries in which we compete; and

 

  •  

placing us at a possible competitive disadvantage with less leveraged competitors and competitors that may have better access to capital resources.

 

This excerpt taken from the AMT 10-Q filed Nov 29, 2006.

Substantial leverage and debt service obligations may adversely affect us.

 

We have a substantial amount of indebtedness. As of September 30, 2006, we had approximately $3.6 billion of consolidated debt. Our substantial level of indebtedness increases the possibility that we may be unable to generate cash sufficient to pay the principal, interest, or other amounts when due. As of September 30, 2006, approximately 48% of our outstanding indebtedness bore interest at floating rates (approximately 25%, after giving effect to the interest rate swap agreements used to manage exposure to variable rate interest obligations on our credit facilities). As a result, our interest payment obligations on such indebtedness will increase if interest rates increase. Subject to certain restrictions under our existing indebtedness, we may also obtain additional long-term debt and working capital lines of credit to meet future financing needs. This would have the effect of increasing our total leverage.

 

Our substantial leverage could have significant negative consequences on our financial condition and results of operations, including:

 

  •   impairing our ability to meet one or more of the financial ratios contained in our debt agreements or to generate cash sufficient to pay interest or principal, which events could result in an acceleration of some or all of our outstanding debt as a result of cross-default provisions;

 

  •   increasing our vulnerability to general adverse economic and industry conditions;

 

  •   limiting our ability to obtain additional debt or equity financing;

 

  •   requiring the dedication of a substantial portion of our cash flow from operations to service our debt, thereby reducing the amount of our cash flow available for other purposes, including capital expenditures;

 

  •   requiring us to sell debt or equity securities or to sell some of our core assets, possibly on unfavorable terms, to meet payment obligations;

 

  •   limiting our flexibility in planning for, or reacting to, changes in our business and the industries in which we compete; and

 

  •   placing us at a possible competitive disadvantage with less leveraged competitors and competitors that may have better access to capital resources.

 

This excerpt taken from the AMT 10-K filed Nov 29, 2006.

Substantial leverage and debt service obligations may adversely affect us.

 

We have a substantial amount of indebtedness. As of December 31, 2005, we had approximately $3.6 billion of consolidated debt. Our substantial level of indebtedness increases the possibility that we may be unable to generate cash sufficient to pay when due the principal of, interest on, or other amounts due with respect to our indebtedness. As of December 31, 2005, approximately 41% of our outstanding indebtedness bore interest at floating rates (approximately 21%, after giving effect to the interest rate swap agreements used to manage exposure to variable rate interest obligations on our credit facilities). As a result, our interest payment obligations on such indebtedness will increase if interest rates increase. Subject to certain restrictions under our existing indebtedness, we may also obtain additional long-term debt and working capital lines of credit to meet future financing needs. This would have the effect of increasing our total leverage.

 

Our substantial leverage could have significant negative consequences on our financial condition and results of operations, including:

 

  •   impairing our ability to meet one or more of the financial ratios contained in our debt agreements or to generate cash sufficient to pay interest or principal, which events could result in an acceleration of some or all of our outstanding debt as a result of cross-default provisions;

 

  •   increasing our vulnerability to general adverse economic and industry conditions;

 

  •   limiting our ability to obtain additional debt or equity financing;

 

  •   requiring the dedication of a substantial portion of our cash flow from operations to service our debt, thereby reducing the amount of our cash flow available for other purposes, including capital expenditures;

 

  •   requiring us to sell debt or equity securities or to sell some of our core assets, possibly on unfavorable terms, to meet payment obligations;

 

  •   limiting our flexibility in planning for, or reacting to, changes in our business and the industries in which we compete; and

 

  •   placing us at a possible competitive disadvantage with less leveraged competitors and competitors that may have better access to capital resources.

 

This excerpt taken from the AMT 10-Q filed Nov 29, 2006.

Substantial leverage and debt service obligations may adversely affect us.

 

We have a substantial amount of indebtedness. As of June 30, 2006, we had approximately $3.6 billion of consolidated debt. Our substantial level of indebtedness increases the possibility that we may be unable to generate cash sufficient to pay the principal, interest, or other amounts when due. As of June 30, 2006, approximately 48% of our outstanding indebtedness bore interest at floating rates (approximately 24%, after giving effect to the interest rate swap agreements used to manage exposure to variable rate interest obligations on our credit facilities). As a result, our interest payment obligations on such indebtedness will increase if interest rates increase. Subject to certain restrictions under our existing indebtedness, we may also obtain additional long-term debt and working capital lines of credit to meet future financing needs. This would have the effect of increasing our total leverage.

 

Our substantial leverage could have significant negative consequences on our financial condition and results of operations, including:

 

  •   impairing our ability to meet one or more of the financial ratios contained in our debt agreements or to generate cash sufficient to pay interest or principal, which events could result in an acceleration of some or all of our outstanding debt as a result of cross-default provisions;

 

  •   increasing our vulnerability to general adverse economic and industry conditions;

 

  •   limiting our ability to obtain additional debt or equity financing;

 

  •   requiring the dedication of a substantial portion of our cash flow from operations to service our debt, thereby reducing the amount of our cash flow available for other purposes, including capital expenditures;

 

  •   requiring us to sell debt or equity securities or to sell some of our core assets, possibly on unfavorable terms, to meet payment obligations;

 

  •   limiting our flexibility in planning for, or reacting to, changes in our business and the industries in which we compete; and

 

  •   placing us at a possible competitive disadvantage with less leveraged competitors and competitors that may have better access to capital resources.

 

55

Table of Contents
This excerpt taken from the AMT 10-Q filed Nov 29, 2006.

Substantial leverage and debt service obligations may adversely affect us.

 

We have a substantial amount of indebtedness. As of March 31, 2006, we had approximately $3.6 billion of consolidated debt. Our substantial level of indebtedness increases the possibility that we may be unable to generate cash sufficient to pay the principal, interest, or other amounts when due. As of March 31, 2006, approximately 46% of our outstanding indebtedness bore interest at floating rates (approximately 23%, after giving effect to the interest rate swap agreements used to manage exposure to variable rate interest obligations on our credit facilities). As a result, our interest payment obligations on such indebtedness will increase if interest rates increase. Subject to certain restrictions under our existing indebtedness, we may also obtain additional long-term debt and working capital lines of credit to meet future financing needs. This would have the effect of increasing our total leverage.

 

Our substantial leverage could have significant negative consequences on our financial condition and results of operations, including:

 

  •   impairing our ability to meet one or more of the financial ratios contained in our debt agreements or to generate cash sufficient to pay interest or principal, which events could result in an acceleration of some or all of our outstanding debt as a result of cross-default provisions;

 

  •   increasing our vulnerability to general adverse economic and industry conditions;

 

  •   limiting our ability to obtain additional debt or equity financing;

 

  •   requiring the dedication of a substantial portion of our cash flow from operations to service our debt, thereby reducing the amount of our cash flow available for other purposes, including capital expenditures;

 

  •   requiring us to sell debt or equity securities or to sell some of our core assets, possibly on unfavorable terms, to meet payment obligations;

 

  •   limiting our flexibility in planning for, or reacting to, changes in our business and the industries in which we compete; and

 

  •   placing us at a possible competitive disadvantage with less leveraged competitors and competitors that may have better access to capital resources.

 

EXCERPTS ON THIS PAGE:

10-Q
May 8, 2009
10-K (2 sections)
Feb 26, 2009
10-Q
Nov 6, 2008
10-Q
Aug 6, 2008
10-Q
May 8, 2008
10-K (2 sections)
Mar 14, 2008
10-Q
Nov 9, 2007
10-Q
Aug 7, 2007
10-Q
May 8, 2007
10-K
Feb 28, 2007
10-Q
Nov 29, 2006
10-K
Nov 29, 2006
10-Q
Nov 29, 2006
10-Q
Nov 29, 2006

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"Substantial leverage and debt service obligations may adversely affect us." elsewhere:

Discovery Communications, Inc. (DISCA)
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