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These excerpts taken from the HBI 10-K filed Feb 19, 2008. Our
indebtedness restricts our ability to obtain additional capital
in the future.
If we need to incur additional debt or issue equity in order to
fund working capital and capital expenditures or to make
acquisitions and other investments, debt or equity financing may
not be available to us on acceptable terms or at all. If we are
not able to obtain sufficient financing, we may be unable to
maintain or expand our business. If we raise funds through the
issuance of debt or equity, any debt securities or preferred
stock issued will have rights, preferences and privileges senior
to those of holders of our common stock in the event of a
liquidation, and the terms of the debt securities may impose
restrictions on our operations. If we raise funds through the
issuance of equity, the issuance would dilute the ownership
interest of our stockholders.
The restrictions contained in the Credit Facilities and in the
indenture governing the Floating Rate Senior Notes restrict our
ability to obtain additional capital in the future to fund
capital expenditures or acquisitions, meet our debt payment
obligations and capital commitments, fund any operating losses
or future development of our business affiliates, obtain lower
borrowing costs that are available from secured lenders or
engage in advantageous transactions that monetize our assets, or
conduct other necessary or prudent corporate activities.
Table of Contents
Our indebtedness restricts our ability to obtain additional capital in the future. If we need to incur additional debt or issue equity in order to fund working capital and capital expenditures or to make acquisitions and other investments, debt or equity financing may not be available to us on acceptable terms or at all. If we are not able to obtain sufficient financing, we may be unable to maintain or expand our business. If we raise funds through the issuance of debt or equity, any debt securities or preferred stock issued will have rights, preferences and privileges senior to those of holders of our common stock in the event of a liquidation, and the terms of the debt securities may impose restrictions on our operations. If we raise funds through the issuance of equity, the issuance would dilute the ownership interest of our stockholders. The restrictions contained in the Credit Facilities and in the indenture governing the Floating Rate Senior Notes restrict our ability to obtain additional capital in the future to fund capital expenditures or acquisitions, meet our debt payment obligations and capital commitments, fund any operating losses or future development of our business affiliates, obtain lower borrowing costs that are available from secured lenders or engage in advantageous transactions that monetize our assets, or conduct other necessary or prudent corporate activities.
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