ENTRAVISION COMMUNICATIONS CORP 10-Q

ITEM 1. LEGAL PROCEEDINGS We are subject to various outstanding claims and other legal proceedings that may arise in the ordinary course of business. In the opinion of management, any liability that may arise out of or with respect to these matters will not materially adversely affect our financial position, results of operations or cash flows. ITEM 1A. RI SK FACTORS The 2023 Credit Agreement contains various covenants that limit management’s discretion in the operation of our business and could limit our ability to grow and compete. The 2023 Credit Agreement contains certain financial covenants and ratios with which we must comply. If we fail to comply with any of the financial covenants or ratios under the 2023 Credit Agreement, our lenders could: • elect to declare all amounts borrowed to be immediately due and payable, together with accrued and unpaid interest; and/or • terminate their commitments, if any, to make further extensions of credit. Any such action by our lenders, or obtain waivers for any failure to comply with financial covenants and ratios, would have a material adverse effect on our overall business and financial condition.