BLOCKBUSTER INC CL A (BBI) 0.74 -$0.01 (-1.33%) 10:11PM (15 mins delay)

Blockbuster Raises Debt

Oct 02, 2009 - 9:51 AM EDT

Dallas based Blockbuster announced a deal to raise $675 million in debt. The company intends to use the proceeds to pay other outstanding debt under a revolving credit facility. The new debt has been issued as senior secured notes at 94 percent of par value, carrying an interest rate of 11.75 percent. The notes are due in 2014 and J.P. Morgan was the book running manager. Blockbuster has been trying to reduce its expenses and improve efficency, heavily divesting non-core business outside North America. The company said it will achieve its goal of cutting $200 million in expenses in 2009. For MarketNewsVideo.com, I'm Maria Burnett.

Source: Market News Video (Oct 02, 2009 - 9:51 AM EDT)