MoneyGram 2008 Annual Report Download - page 73

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Table of Contents
similar expressions are intended to identify some of the forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 and are included, along with this statement, for purposes of complying with the safe harbor provisions of
that Act. These forward-looking statements involve risks and uncertainties. Actual results may differ materially from those contemplated
by the forward-looking statements due to, among others, the risks and uncertainties described in this Annual Report on Form 10-K,
including those described below and under Item 1A entitled "Risk Factors," and in the documents incorporated by reference herein. These
forward-looking statements speak only as of the date on which such statements are made. We undertake no obligation to update publicly
or revise any forward-looking statements for any reason, whether as a result of new information, future events or otherwise, except as
required by federal securities law.
• Substantial Debt Service and Dividend Obligations. Our substantial debt service and dividend obligations and our covenant
requirements may adversely impact our ability to obtain additional financing and to operate and grow our business and may make us
more vulnerable to negative economic conditions.
• Significant Dilution to Stockholders and Control of New Investors. The Series B Stock issued to the Investors at the closing of the
Capital Transaction, dividends accrued on the Series B Stock post-closing and potential special voting rights provided to the
Investors' designees on the Company's Board of Directors significantly dilute the interests of our existing stockholders and give the
Investors control of the Company.
• Sustained Financial Market Disruptions. Disruption in global capital and credit markets may adversely affect our liquidity, our
agents' liquidity, our access to credit and capital, our agents' access to credit and capital and our earnings on our investment
portfolio.
• Sustained Negative Economic Conditions. Negative economic conditions generally and in geographic areas or industries that are
important to our business may cause a decline in our transaction volume, and we may be unable to timely and effectively reduce our
operating costs or take other actions in response to a significant decline in transaction volume.
• International Migration Patterns. A material slow down or complete disruption of international migration patterns could adversely
affect our money transfer volume and growth rate.
• Retention of Global Funds Transfer Agents and Billers. We may be unable to maintain retail agent or biller relationships or we may
experience a reduction in transaction volume from these relationships.
• Interest Rate Fluctuations. Fluctuations in interest rates may negatively affect the net investment margin of our Official Check and
Money Order businesses.
• Repricing of our Official Check and Money Order Businesses. We may be unable to operate our official check and money order
businesses profitably as a result of our revised pricing strategies.
• Stockholder Litigation and Related Risks. Stockholder lawsuits and other litigation or government investigations of the Company or
its agents could result in material settlements, fines, penalties or legal fees.
• Maintenance of Banking Relationships. We may be unable to maintain existing or establish new banking relationships, including
the Company's domestic and international clearing bank relationships, which could adversely affect our business, results of
operation and our financial condition.
• Loss of Key Employees. We may be unable to attract and retain key employees.
• Failure to Maintain Sufficient Capital. We may be unable to maintain sufficient capital to pursue our growth strategy, fund key
strategic initiatives, and meet evolving regulatory requirements.
• Credit Risks. If we are unable to manage credit risks from our retail agents and official check financial institution customers, which
risks may increase during negative economic conditions, our business could be harmed.
• Fraud Risks. If we are unable to manage fraud risks from consumers or certain agents, which risks may increase during negative
economic conditions, our business could be harmed.
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