American Home Shield 2011 Annual Report Download - page 29

Table of Contents
a $0.3 million change in annual rent expense with respect to such operating leases. The impact of increases in interest rates could be more significant for us
than it would be for some other companies because of our substantial debt and floating rate operating leases.
The agreements and instruments governing our debt contain restrictions and limitations that could significantly impact our ability to operate our
business.
The Credit Facilities contain covenants that, among other things, restrict our ability to:
incur additional debt (including guarantees of other debt);
pay dividends or make other restricted payments, including investments;
prepay or amend the terms of certain outstanding debt;
enter into certain types of transactions with affiliates;
sell certain assets, or, in the case of any borrower under the Credit Facilities, consolidate, merge, sell or otherwise dispose of all or substantially
all of its assets;
create liens;
in the case of the Term Loan Facility, enter into agreements restricting dividends or other distributions by subsidiaries to ServiceMaster; and
in the case of the Revolving Credit Facility, make acquisitions, enter into agreements restricting our ability to incur liens securing the Revolving
Credit Facility and change our business.
The indentures governing the 2015 Notes and the 2020 Notes also contain restrictive covenants that, among other things, limit our ability and the ability
of our restricted subsidiaries to:
incur additional debt;
repurchase certain debt;
pay dividends, redeem stock or make other distributions;
make investments;
create certain liens;
transfer or sell assets;
merge, consolidate or sell all or substantially all of our assets;
create restrictions on the ability of our restricted subsidiaries to make payments to us;
designate our subsidiaries as unrestricted subsidiaries; and
enter into certain transactions with our affiliates.
The restrictions in the indentures governing the 2015 Notes and the 2020 Notes, the Credit Facilities and the instruments governing our other debt may
prevent us from taking actions that we believe would be in the best interest of our business and may make it difficult for us to execute our business strategy
successfully or effectively compete with companies that are not similarly restricted. We may also incur future debt obligations that might subject us to
additional restrictive covenants that could affect our financial and operational flexibility. We cannot assure you that we will be able to refinance our debt, at
maturity or otherwise, on terms acceptable to us, or at all.
Our ability to comply with the covenants and restrictions contained in the Credit Facilities, the indentures governing the 2015 Notes and the 2020 Notes
and the instruments governing our other
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