National Oilwell Varco 2003 Annual Report Download - page 9

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8
In 1998, National Oilwell issued $150 million of 6.875% unsecured senior notes due July 1,
2005. In 2001, we issued an additional $150 million of 6.5% unsecured senior notes due
March 15, 2011. In 2002, we issued $200 million of 5.65% unsecured senior notes due
November 15, 2012. We also have $313 million in committed credit facilities (reduced to $269
million in February 2004) and an additional $134 million available in uncommitted facilities. Our
leverage requires us to use some of our cash flow from operations for payment of interest on our
debt. Our leverage may also make it more difficult to obtain additional financing in the future.
Further, our leverage could make us more vulnerable to economic downturns and competitive
pressures.
We do not currently have sufficient cash to repay the notes that are due July 1, 2005, and we have
no arrangements in place to refinance. There is no assurance that we will be able to generate
sufficient cash or borrow funds in the future to allow us to repay this debt.