iHeartMedia 2011 Annual Report Download - page 46

2009
Cash provided by financing activities during 2009 primarily reflected a draw of remaining availability of $1.6 billion under
our revolving credit facility and $2.5 billion of proceeds from the issuance of subsidiary senior notes, offset by the $2.0 billion
paydown of our senior secured credit facilities. We also repaid the remaining principal amount of our 4.25% senior notes at maturity
with a draw under our $500.0 million delayed draw term loan facility that was specifically designated for this purpose as discussed in
the “Debt Repurchases, Maturities and Other” section within this MD&A. Our wholly-owned subsidiaries, CC Finco and Clear
Channel Acquisition, LLC (formerly CC Finco II, LLC), together repurchased certain of our outstanding senior notes for $343.5
million as discussed in the “Debt Repurchases, Maturities and Other” section within this MD&A. In addition, during 2009, our
Americas outdoor segment purchased the remaining 15% interest in our fully consolidated subsidiary, Paneles Napsa S.A., for $13.0
million and our International outdoor segment acquired an additional 5% interest in our fully consolidated subsidiary, Clear Channel
Jolly Pubblicita SPA, for $12.1 million.
Anticipated Cash Requirements
Our primary source of liquidity is cash on hand and cash flow from operations and borrowings under our revolving credit
facility and receivables based credit facility. We have a large amount of indebtedness, and a substantial portion of our cash flows are
used to service debt. At December 31, 2011, we had $1.2 billion of cash on our balance sheet, with $542.7 million held by our
subsidiary, CCOH, and its subsidiaries. We have debt maturities totaling $275.6 million and $420.5 million in 2012 and 2013,
respectively.
Our ability to fund our working capital needs, debt service and other obligations, and to comply with the financial covenant
under our financing agreements depends on our future operating performance and cash flow, which are in turn subject to prevailing
economic conditions and other factors, many of which are beyond our control. If our future operating performance does not meet our
expectations or our plans materially change in an adverse manner or prove to be materially inaccurate, we may need additional
financing. Consequently, there can be no assurance that such financing, if permitted under the terms of our financing agreements, will
be available on terms acceptable to us or at all. The inability to obtain additional financing in such circumstances could have a
material adverse effect on our financial condition and on our ability to meet our obligations.
We frequently evaluate strategic opportunities both within and outside our existing lines of business. We expect from time
to time to pursue additional acquisitions and may decide to dispose of certain businesses. These acquisitions or dispositions could be
material.
Based on our current and anticipated levels of operations and conditions in our markets, we believe that cash on hand,
availability under our revolving credit facility and receivables based facility, as well as cash flow from operations will enable us to
meet our working capital, capital expenditure, debt service and other funding requirements for at least the next 12 months.
We expect to be in compliance with the covenants contained in our material financing agreements in 2012, including the
maximum consolidated senior secured net debt to consolidated EBITDA limitation contained in our senior secured credit facilities.
However, our anticipated results are subject to significant uncertainty and 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 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. In addition, a default or acceleration under any of
our material financing agreements could cause a default under other of our obligations that are subject to cross-default and cross-
acceleration provisions. The threshold amount for a cross-default under the senior secured credit facilities and receivables based
facility is $100.0 million.
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