Blockbuster Announces Payout Date20 Aug, 2004 By: Holly J. Wagner
Blockbuster's board of directors set Sept. 3 as the date of its announced $5-per-share dividend payout, which will go to shareholders of record at the close of business Aug. 27.
The company's stock leapt 10 percent in morning trading after the announcement.
The payout is another step toward splitting from Viacom, which owns 81 percent of Blockbuster shares.
Blockbuster previously announced it would sell $300 million in debt to fund the dividend and borrow $650 million under its new $1.15 billion bank credit facility, both of which closed today.
The senior subordinated notes were sold to qualified investors for resale in accordance with Securities and Exchange Commission Rule 144A and Regulation S. The notes are general unsecured obligations of Blockbuster and are subordinated to all of Blockbuster's existing and future senior debt.