Blockbuster doubles secured notes offering
PHYSICAL: Retailer will use proceeds to pay off existing debt
By Cindy Spielvogel -- Video Business, 9/17/2009
SEPT. 17 | PHYSICAL: Interest in purchasing Blockbuster’s senior secured notes has been strong enough to prompt the company to nearly double the size of its offering, the video rental chain announced today.
Blockbuster, which on Sept. 14 said it was looking to sell as much as $340 million in senior secured notes in a refinancing move, has raised the amount to $675 million.
Blockbuster will use the proceeds largely to pay off its existing debt, which included a $250 million payment due next year. It won’t have to repay the new notes until 2014.
The interest rate for the notes will be 11.75%, and the sale is expected to close around Oct. 1.
