OI » Topics » Substantial Leverage - The Companys substantial indebtedness could adversely affect the Companys financial health.

These excerpts taken from the OI 10-K filed Feb 17, 2009.

Substantial Leverage – The Company’s substantial indebtedness could adversely affect the Company’s financial health.

 

The Company has a significant amount of debt.  As of December 31, 2008, the Company had approximately $3.3 billion of total debt outstanding, reduced from $3.7 billion at December 31, 2007.  While the debt level is lower, the Company’s remaining indebtedness could result in the following consequences:

 

·                  Increased vulnerability to general adverse economic and industry conditions;

·                  Increased vulnerability to interest rate increases for the portion of the unhedged and fixed rate borrowing swapped into variable rates;

·                  Require the Company to dedicate a substantial portion of cash flow from operations to payments on indebtedness, thereby reducing the availability of cash flow to fund working capital, capital expenditures, acquisitions, development efforts and other general corporate purposes;

·                  Limited flexibility in reacting to the Company’s competitors that have less debt; and

·                  Limit, along with the financial and other restrictive covenants in the documents governing  indebtedness, among other things, the Company’s ability to borrow additional funds.

 

Substantial Leverage – The Company’s
substantial indebtedness could adversely affect the Company’s financial health.



 



The Company has a significant amount of debt.  As of December 31, 2008, the Company had
approximately $3.3 billion of total debt outstanding, reduced from $3.7 billion
at December 31, 2007.  While the
debt level is lower, the Company’s remaining indebtedness could result in the
following consequences:



 



·                  Increased
vulnerability to general adverse economic and industry conditions;



·                  Increased
vulnerability to interest rate increases for the portion of the unhedged and
fixed rate borrowing swapped into variable rates;



·                  Require the
Company to dedicate a substantial portion of cash flow from operations to
payments on indebtedness, thereby reducing the availability of cash flow to
fund working capital, capital expenditures, acquisitions, development efforts
and other general corporate purposes;



·                  Limited flexibility
in reacting to the Company’s competitors that have less debt; and



·                  Limit, along
with the financial and other restrictive covenants in the documents
governing  indebtedness, among other
things, the Company’s ability to borrow additional funds.



 



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

Substantial Leverage – The Company’s substantial indebtedness could adversely affect the Company’s financial health.

 

The Company has a significant amount of debt.  As of December 31, 2007, the Company had approximately $3.7 billion of total debt outstanding, reduced from $5.5 billion at December 31, 2006.  While the debt level is lower, the Company’s remaining indebtedness could result in the following consequences:

 

·      Increased vulnerability to general adverse economic and industry conditions;

·      Increased vulnerability to interest rate increases for the portion of the unhedged and fixed rate borrowing swapped into variable rates;

·      Require the Company to dedicate a substantial portion of cash flow from operations to payments on indebtedness, thereby reducing the availability of cash flow to fund working capital, capital expenditures, acquisitions, development efforts and other general corporate purposes;

·      Limited flexibility in reacting to the Company’s competitors that have less debt; and

·      Limit, along with the financial and other restrictive covenants in the documents governing  indebtedness, among other things, the Company’s ability to borrow additional funds.

 

This excerpt taken from the OI 10-K filed Mar 1, 2007.

Substantial Leverage – The Company’s substantial indebtedness could adversely affect the Company’s financial health.

The Company has a significant amount of debt.  As of December 31, 2006, the Company had approximately $5.5 billion of total debt outstanding.  The Company’s substantial indebtedness could result in the following consequences:

·                  Increased vulnerability to general adverse economic and industry conditions;

·                  Increased vulnerability to interest rate increases for the portion of the unhedged and fixed rate borrowing swapped into variable rates;

·                  Require the Company to dedicate a substantial portion of cash flow from operations to payments on indebtedness, thereby reducing the availability of cash flow to fund working capital, capital expenditures, acquisitions, development efforts and other general corporate purposes;

·                  Limited flexibility in planning for, or reacting to the Company’s competitors that have less debt; and

·                  Limit, along with the financial and other restrictive covenants in the documents governing our indebtedness, among other things, the ability to borrow additional funds.

This excerpt taken from the OI 10-K filed Mar 16, 2006.

Substantial Leverage – The Company’s substantial indebtedness could adversely affect the Company’s financial health.

 

The Company has a significant amount of debt. As of December 31, 2005, the Company had $5.3 billion of total debt outstanding. The Company’s substantial indebtedness could result in the following consequences:

 

                  Increase vulnerability to general adverse economic and industry conditions;

                  Increase vulnerability to interest rate increases for the portion of the unhedged and fixed rate borrowing swapped into variable rates;

                  Require the Company to dedicate a substantial portion of cash flow from operations to payments on indebtedness, thereby reducing the availability of cash flow to fund working capital, capital expenditures, acquisitions, development efforts and other general corporate purposes;

                  Limit flexibility in planning for, or reacting to the Company’s competitors that have less debt; and

                  Limit, along with the financial and other restrictive covenants in the documents governing our indebtedness, among other things, the ability to borrow additional funds.

 

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