iHeartMedia 2009 Annual Report Download - page 27

Our failure to comply with the covenants in our material financing agreements could be an event of default and could accelerate the
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ayment obligations and, in some cases, could affect other obligations with cross-default and cross-acceleration provisions
In addition to covenants contained in our material financing agreements, including the subsidiary senior notes, that impose
restrictions on our business and operations, our senior secured credit facilities include a maximum consolidated senior secured net
debt to adjusted EBITDA limitation. Our ability to comply with this limitation may be affected by events beyond our control,
including prevailing economic, financial and industry conditions. The breach of any covenants set forth in our financing agreements,
including the subsidiary senior notes, would result in a default thereunder. An event of default would permit the lenders under a
defaulted financing agreement to declare all indebtedness thereunder to be due and payable prior to maturity. Moreover, the lenders
under the revolving credit facility under our senior secured credit facilities would have the option to terminate their commitments to
make further extensions of revolving credit thereunder. If we are unable to repay our obligations under any secured credit facility, the
lenders could proceed against any assets that were pledged to secure such facility (including certain deposit accounts). In addition, a
default or acceleration under any of our material financing agreements, including the subsidiary senior notes, could cause a default
under other obligations that are subject to cross-default and cross-acceleration provisions. The threshold amount for a cross-default
under the senior secured credit facilities is $100 million dollars.
Cautionary Statement Concerning Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by us or
on our behalf. Except for the historical information, this report contains various forward-looking statements which represent our
expectations or beliefs concerning future events, including without limitation, our future operating and financial performance and
availability of capital resources and the terms thereof. Statements expressing expectations and projections with respect to future
matters are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. We caution that these
forward-looking statements involve a number of risks and uncertainties and are subject to many variables which could impact our
future performance. These statements are made on the basis of management’s views and assumptions, as of the time the statements
are made, regarding future events and performance. There can be no assurance, however, that management’s expectations will
necessarily come to pass. We do not intend, nor do we undertake any duty, to update any forward-looking statements.
A wide range of factors could materially affect future developments and performance, including:
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• the impact of the substantial indebtedness incurred to finance the consummation of the merger;
• risks associated with the global economic crisis and its impact on capital markets and liquidity;
• the need to allocate significant amounts of our cash flow to make payments on our indebtedness, which in turn
could reduce our financial flexibility and ability to fund other activities;
• the impact of the global economic downturn, which has adversely affected advertising revenues across our
businesses and other general economic and political conditions in the United States and in other countries in
which we currently do business, including those resulting from recessions, political events and acts or threats
of terrorism or military conflicts;
• our restructuring program may not be entirely successful;
• the impact of the geopolitical environment;
• our ability to integrate the operations of recently acquired companies;
• shifts in population and other demographics;
• industry conditions, including competition;
• fluctuations in operating costs;
• technological changes and innovations;
• changes in labor conditions;
• fluctuations in exchange rates and currency values;
• capital expenditure requirements;
• the outcome of pending and future litigation settlements;
• legislative or regulatory requirements;
• changes in interest rates;
• the effect of leverage on our financial position and earnings;
• taxes;
• access to capital markets and borrowed indebtedness; and
• certain other factors set forth in our other filings with the Securities and Exchange Commission.