Investing in the notes being offered by this prospectus supplement and the accompanying prospectus involves a high degree of risk. Before
deciding whether to invest in the notes, you should consider carefully the risk factors related to the notes and this offering described below and the other risk factors incorporated herein by reference to our Annual Report on Form 10-K for the year
ended December 31, 2016. If any of these risks actually occurs, it may materially harm our business, financial condition, operating results or cash flow. As a result, the market price of our common stock and, in turn, the trading price of the
notes could decline, and you could lose part or all of your investment. Additional risks and uncertainties that are not yet identified or that we think are immaterial may also materially harm our business, operating results and financial condition
and could result in a complete loss of your investment.
As used in this section of the prospectus supplement, the term
notes includes the initial notes, unless the context requires otherwise.
Risks Related to the Notes and this Offering
The notes are effectively subordinated to any of our existing and future secured debt and structurally subordinated to the liabilities of our
The notes will be our general unsecured obligations and will rank equal in right of payment with any other senior
unsecured indebtedness we incur and senior in right of payment to any existing and future indebtedness that is contractually subordinated to the notes. The notes, however, will be effectively subordinated to our existing and future secured
indebtedness to the extent of the value of the collateral securing such indebtedness and structurally subordinated to all existing and future indebtedness, other liabilities (including trade payables) and (to the extent not held by us) preferred
stock, if any, of our subsidiaries. As of September 30, 2017, excluding our subsidiaries, we had no secured indebtedness and $484.75 million of senior unsecured indebtedness, and our subsidiaries had $1.4 billion of indebtedness and other
In the event of a bankruptcy, liquidation, dissolution, reorganization or similar proceeding with respect to us, we, as a
common equity owner of such subsidiary, and, therefore, holders of our debt, including holders of the notes, will be subject to the prior claims of such subsidiarys creditors, including trade creditors and preferred equity holders. The
provisions of the indenture governing the notes do not prohibit us from incurring additional secured indebtedness nor do they prohibit any of our subsidiaries from incurring additional indebtedness or issuing preferred stock in the future.
Our indebtedness and liabilities could limit cash flow available for our operations, expose us to risks that could adversely affect our business,
financial condition and results of operations and impair our ability to satisfy our obligations under the notes.
September 30, 2017, our total consolidated liabilities were approximately $1.8 billion. We will incur an additional $100.0 million (or $115.0 million, if the underwriters fully exercise their option to purchase additional notes) of
indebtedness in connection with this offering. We may also incur additional indebtedness to meet future financing needs. Our indebtedness could have significant negative consequences for our business, results of operations and financial condition,
||increasing our vulnerability to adverse economic and industry conditions; |
||limiting our ability to obtain additional financing; |
||requiring the dedication of a substantial portion of our cash flow from operations to service our indebtedness, thereby reducing the amount of our cash flow available for other purposes; |
||limiting our flexibility in planning for, or reacting to, changes in our business; |