FCN » Topics » Our substantial indebtedness could adversely affect our financial condition and business operations.

These excerpts taken from the FCN 10-K filed Mar 2, 2009.

Our substantial indebtedness could adversely affect our financial condition and business operations.

We have a significant amount of indebtedness. As of December 31, 2008, we had total outstanding borrowings of $567.9 million of which $565.0 million is under our 7 5/8% senior notes due 2013, 3 3/4% senior subordinated convertible notes due 2012 and 7 3/4% senior notes due 2016 (collectively, our notes) and $9.2 million of outstanding letters of credit under our senior secured bank revolving credit facility. We have an additional $165.8 million of revolving credit available under our senior secured bank credit facility.

Our substantial indebtedness could have important consequences. For example, it could:

 

   

make it more difficult to satisfy our other financial obligations;

 

   

increase our vulnerability to adverse economic and industry conditions;

 

   

require us to dedicate a substantial portion of our cash flows from operations to payments on our indebtedness, thereby reducing the availability of our cash flows to fund working capital, capital expenditures, research and development efforts and other general corporate purposes;

 

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limit our ability to borrow additional funds; or

 

   

limit our ability to make future acquisitions.

Our notes and senior secured bank credit facility contain restrictive covenants that limit our ability to engage in activities that we may feel would be beneficial to our business. In addition, our failure to comply with those covenants could result in an event of default which, if not cured or waived, could result in the acceleration of all of our outstanding indebtedness.

Our substantial indebtedness could adversely affect our financial condition and business operations.

We have a significant amount of indebtedness. As of December 31, 2008, we had total outstanding borrowings of $567.9 million of which $565.0 million is under our 7 5/8% senior notes due 2013, 3 3/4% senior subordinated convertible notes due 2012 and 7 3/4% senior notes due 2016 (collectively, our notes) and $9.2 million of outstanding letters of credit under our senior secured bank revolving credit facility. We have an additional $165.8 million of revolving credit available under our senior secured bank credit facility.

Our substantial indebtedness could have important consequences. For example, it could:

 

   

make it more difficult to satisfy our other financial obligations;

 

   

increase our vulnerability to adverse economic and industry conditions;

 

   

require us to dedicate a substantial portion of our cash flows from operations to payments on our indebtedness, thereby reducing the availability of our cash flows to fund working capital, capital expenditures, research and development efforts and other general corporate purposes;

 

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limit our ability to borrow additional funds; or

 

   

limit our ability to make future acquisitions.

Our notes and senior secured bank credit facility contain restrictive covenants that limit our ability to engage in activities that we may feel would be beneficial to our business. In addition, our failure to comply with those covenants could result in an event of default which, if not cured or waived, could result in the acceleration of all of our outstanding indebtedness.

Our substantial indebtedness could adversely affect our financial condition and business operations.

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-height:95%; vertical-align:top">We have a significant amount of indebtedness. As of December 31, 2008, we had total
outstanding borrowings of $567.9 million of which $565.0 million is under our 7
 5/SIZE="1">8% senior notes due 2013, 3 3/4% senior subordinated convertible notes due
2012 and 7
 3/4% senior notes
due 2016 (collectively, our notes) and $9.2 million of outstanding letters of credit under our senior secured bank revolving credit facility. We have an additional $165.8 million of revolving credit available under our senior secured bank credit
facility.

Our substantial indebtedness could have important consequences. For example, it could:

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







  

make it more difficult to satisfy our other financial obligations;

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







  

increase our vulnerability to adverse economic and industry conditions;

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







  

require us to dedicate a substantial portion of our cash flows from operations to payments on our indebtedness, thereby reducing the availability of our cash flows
to fund working capital, capital expenditures, research and development efforts and other general corporate purposes;

 


31







Table of Contents








  

limit our ability to borrow additional funds; or

 







  

limit our ability to make future acquisitions.

FACE="Times New Roman" SIZE="2">Our notes and senior secured bank credit facility contain restrictive covenants that limit our ability to engage in activities that we may feel would be beneficial to our business. In addition, our failure to comply
with those covenants could result in an event of default which, if not cured or waived, could result in the acceleration of all of our outstanding indebtedness.

SIZE="2">To service our indebtedness, we require a significant amount of cash. Our ability to generate cash depends on many factors beyond our control.

FACE="Times New Roman" SIZE="2">Our ability to make payments on our indebtedness and to fund capital expenditures and acquisitions depends on our ability to generate cash from our operations. This, to a certain extent, is subject to economic,
financial, competitive, legislative, regulatory and other factors that are beyond our control.

Based on our current level of operations,
we believe our cash flows from operations, available cash and available borrowings under our senior secured bank credit facility will be adequate to meet our liquidity needs for the next 12 months. We cannot provide assurance, however, that our
business will generate sufficient cash flows from operations, that cost savings and operating improvements will be realized or that future borrowings will be available to us under our senior secured bank credit facility or that we can obtain
alternative financing proceeds in an amount sufficient to enable us to pay our indebtedness and fund our other cash needs and business growth. We cannot provide assurance that we will be able to obtain additional third party financing or refinance
any of our existing indebtedness on commercially reasonable terms or at all, particularly in light of the current economy and credit situation.

Our substantial indebtedness could adversely affect our financial condition and business operations.

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-height:95%; vertical-align:top">We have a significant amount of indebtedness. As of December 31, 2008, we had total
outstanding borrowings of $567.9 million of which $565.0 million is under our 7
 5/SIZE="1">8% senior notes due 2013, 3 3/4% senior subordinated convertible notes due
2012 and 7
 3/4% senior notes
due 2016 (collectively, our notes) and $9.2 million of outstanding letters of credit under our senior secured bank revolving credit facility. We have an additional $165.8 million of revolving credit available under our senior secured bank credit
facility.

Our substantial indebtedness could have important consequences. For example, it could:

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







  

make it more difficult to satisfy our other financial obligations;

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







  

increase our vulnerability to adverse economic and industry conditions;

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







  

require us to dedicate a substantial portion of our cash flows from operations to payments on our indebtedness, thereby reducing the availability of our cash flows
to fund working capital, capital expenditures, research and development efforts and other general corporate purposes;

 


31







Table of Contents








  

limit our ability to borrow additional funds; or

 







  

limit our ability to make future acquisitions.

FACE="Times New Roman" SIZE="2">Our notes and senior secured bank credit facility contain restrictive covenants that limit our ability to engage in activities that we may feel would be beneficial to our business. In addition, our failure to comply
with those covenants could result in an event of default which, if not cured or waived, could result in the acceleration of all of our outstanding indebtedness.

SIZE="2">To service our indebtedness, we require a significant amount of cash. Our ability to generate cash depends on many factors beyond our control.

FACE="Times New Roman" SIZE="2">Our ability to make payments on our indebtedness and to fund capital expenditures and acquisitions depends on our ability to generate cash from our operations. This, to a certain extent, is subject to economic,
financial, competitive, legislative, regulatory and other factors that are beyond our control.

Based on our current level of operations,
we believe our cash flows from operations, available cash and available borrowings under our senior secured bank credit facility will be adequate to meet our liquidity needs for the next 12 months. We cannot provide assurance, however, that our
business will generate sufficient cash flows from operations, that cost savings and operating improvements will be realized or that future borrowings will be available to us under our senior secured bank credit facility or that we can obtain
alternative financing proceeds in an amount sufficient to enable us to pay our indebtedness and fund our other cash needs and business growth. We cannot provide assurance that we will be able to obtain additional third party financing or refinance
any of our existing indebtedness on commercially reasonable terms or at all, particularly in light of the current economy and credit situation.

This excerpt taken from the FCN 10-K filed Feb 29, 2008.

Our substantial indebtedness could adversely affect our financial condition and business operations.

We have a significant amount of indebtedness. As of December 31, 2007, we had total outstanding borrowings of $573.4 million of which $565.4 million is under our 7 5/8% senior notes due 2013, 3 3/4% senior subordinated convertible notes due 2012 and 7 3/4% senior notes due 2016 (collectively, our notes) and $9.2 million of outstanding letters of credit under our senior secured bank revolving credit facility. We have an additional $140.8 million of revolving credit available under our senior secured bank credit facility.

Our substantial indebtedness could have important consequences. For example, it could:

 

   

make it more difficult to satisfy our other financial obligations;

 

   

increase our vulnerability to adverse economic and industry conditions;

 

   

require us to dedicate a substantial portion of our cash flows from operations to payments on our indebtedness, thereby reducing the availability of our cash flows to fund working capital, capital expenditures, research and development efforts and other general corporate purposes;

 

   

limit our ability to borrow additional funds; or

 

   

limit our ability to make future acquisitions.

In addition, our notes and senior secured bank credit facility contain restrictive covenants that limit our ability to engage in activities that we may feel would be beneficial to our business. In addition, our failure to comply with those covenants could result in an event of default which, if not cured or waived, could result in the acceleration of all of our outstanding indebtedness.

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