MoneyGram 2010 Annual Report Download - page 15

Table of Contents
RISK FACTORS
Our substantial debt service and preferred stock obligations, significant debt covenant requirements and our credit rating could
impair our financial condition and adversely affect our ability to operate and grow our business.
We have substantial debt service and preferred stock obligations. Our indebtedness could adversely affect our ability to operate our
business and could have an adverse impact on our stockholders, including:
• our ability to obtain additional financing in the future may be impaired;
• a significant portion of our cash flows from operations must be dedicated to the payment of interest and principal on our debt, which
reduces the funds available to us for our operations, acquisitions, product development or other corporate initiatives;
• our debt agreements contain financial and restrictive covenants that could significantly impact our ability to operate our business
and any failure to comply with them may result in an event of default, which could have a material adverse effect on us;
• our level of indebtedness increases our vulnerability to changing economic, regulatory and industry conditions;
• our debt service obligations could limit our flexibility in planning for, or reacting to, changes in our business and the industry;
• our debt service obligations could place us at a competitive disadvantage to our competitors who have less leverage relative to their
overall capital structures;
• our ability to pay cash dividends to the holders of our common stock is significantly restricted;
• payment of cash dividends to the holders of the preferred stock in the future could reduce the funds available to us for our
operations, acquisitions, product development or other corporate initiatives; and
• we may be required to pay significant fees to obtain the necessary consents from holders of our debt to amend or reduce our debt
and/or preferred stock.
Our credit rating is non-investment grade. Together with our level of leverage, this rating adversely affects our ability to obtain additional
financing and increases our cost of borrowing.
Our proposed 2011 Recapitalization is subject to a number of conditions beyond our control. Failure to complete the 2011
Recapitalization could adversely affect our stock price and our future business and financial results.
Our proposed 2011 Recapitalization is subject to a number of conditions beyond our control that may prevent, delay or otherwise
materially adversely affect the completion of the 2011 Recapitalization, including the approval of the Stockholder Approval Matters by
the affirmative vote of a majority of the outstanding shares of our common stock and B Stock (on an as-converted basis), voting as a
single class, and the affirmative vote of a majority of the outstanding shares of our common stock (not including the B Stock or any other
stock of the Company held by any Investor), in each case voting on the Stockholder Approval Matters, and the Company's receipt of
sufficient financing to consummate the 2011 Recapitalization. We cannot predict whether and when these conditions will be satisfied. We
will also incur significant transaction costs whether or not the 2011 Recapitalization is completed. Any failure to complete the 2011
Recapitalization could have a material adverse effect on our stock price and our future business and financial results.
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