Company: CNDT
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001677703-25-000029
Chunk: 36

Company: CONDUENT Inc
Filing Date: 2025-02-19
Form: 10-K
Item: Item 1A
Chunk 36
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 beyond our control.

The terms of our indebtedness may restrict our current and future operations, particularly our ability to incur debt that we may need to fund initiatives in response to changes in our business, the industries in which we operate, the economy and governmental regulations.

The terms of our indebtedness include several restrictive covenants that impose significant operating and financial restrictions on us and our subsidiaries and limit our ability to engage in actions that may be in our long-term best interests. These may restrict our and our subsidiaries’ ability to take some or all of the following actions:

•incur or guarantee additional indebtedness or sell disqualified or preferred stock;

•pay dividends on, make distributions in respect of, repurchase or redeem capital stock;

•make investments or acquisitions;

•sell, transfer or otherwise dispose of certain assets;

•create liens;

•enter into sale/leaseback transactions;

•enter into agreements restricting the ability to pay dividends or make other intercompany transfers;

•consolidate, merge, sell or otherwise dispose of all or substantially all of our or our subsidiaries’ assets;

•enter into transactions with affiliates;

•prepay, repurchase or redeem certain kinds of indebtedness;

•issue or sell stock of our subsidiaries; and/or

•significantly change the nature of our business.

As a result of all of these restrictions, we may be:

•limited in how we conduct our business and pursue our strategy; 

•unable to raise additional debt financing to operate during general economic or business downturns; or

•unable to compete effectively or to take advantage of new business opportunities.

A breach of any of the restrictive covenants, if applicable, could result in an event of default under the terms of this indebtedness. If an event of default occurs, the lenders would have the right to accelerate the repayment of such 

CNDT 2024 Annual Report24

debt and the event of default or acceleration may result in the acceleration of the repayment of any other of our debt to which a cross-default or cross-acceleration provision applies. Furthermore, under this indebtedness we have pledged our assets as collateral as security for our repayment obligations. If we were unable to repay any amount of this indebtedness when due and payable, the lenders could proceed against the collateral that secures this indebtedness. In the event our creditors accelerate the repayment of our borrowings, we may not have sufficient assets to repay such indebtedness, which could materially adversely affect our results of operations and financial condition.

The failure to obtain or maintain a