Toro 2009 Annual Report Download - page 24

place us at a competitive disadvantage relative to other companies periods, the banks could terminate their commitments unless we
that may be subject to fewer, if any, restrictions or may otherwise could negotiate a covenant waiver. The banks could condition such
adversely affect our business. Transactions that we may view as waiver on amendments to the terms of our credit arrangements
important opportunities, such as significant acquisitions, may be that may be unfavorable to us. In addition, our 6.625% senior
subject to the consent of the lenders under our credit arrange- notes and 7.800% debentures could become due and payable if
ments, which consent may be withheld or granted subject to condi- we were unable to obtain a covenant waiver or refinance our
tions specified at the time that may affect the attractiveness or medium-term debt under our credit arrangements. If our credit rat-
viability of the transaction. ing falls below investment grade, the interest rate we currently pay
Distress in the worldwide credit markets has had an adverse on outstanding debt under our credit arrangements could increase,
impact on the availability of credit. Although our $225 million which could adversely affect our operating results.
revolving credit facility does not expire until January 2012, market
Our business is subject to a number of other
deterioration could jeopardize the counterparty obligations of one
miscellaneous risks that may adversely affect our
or more of the banks participating in our facility, which could have
operating results, financial condition, or business.
an adverse effect on our business if we are not able to replace
such credit facility or find other sources of liquidity on acceptable Other miscellaneous risks that could affect our business include:
terms.
•
natural or man-made disasters, which may result in shortages of
raw materials and components, higher fuel costs, and increase
If we are unable to comply with the terms of our credit in insurance premiums;
arrangements and indentures, especially the financial
•
financial viability of distributors and dealers, changes in distribu-
covenants, our credit arrangements could be terminated tor ownership, our success in partnering with new dealers, and
and our senior notes and debentures could become due our customers’ ability to pay amounts owed to us; and
and payable.
•
continued threat of terrorist acts and war, which may result in
We cannot assure you that we will be able to comply with all of the heightened security and higher costs for import and export ship-
terms of our credit arrangements and indentures, especially the ments of components or finished goods, reduced leisure travel,
financial covenants. Our ability to comply with such terms depends and contraction of the U.S. and worldwide economies.
on the success of our business and our operating results. Various
risks, uncertainties, and events beyond our control could affect our ITEM 1B.UNRESOLVED STAFF COMMENTS
ability to comply with the terms of our credit arrangements and/or
None.
indentures. If we were out of compliance with any covenant
required by our credit arrangements following any applicable cure
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