Blockbuster Debt Gets Boost7 Jul, 2008 By: Erik Gruenwedel
Blockbuster Inc.'s decision last week to abandon its $1.3 billion acquisition attempt of Circuit City Stores Inc. reportedly helped the Dallas-based rental giant increase the value of its 9% long term bonds (due in 2012) to 84.25 cents from 82 cents.
Blockbuster CEO Jim Keyes cited “market conditions” for the decision not to pursue the Richmond, Va.-based No. 2 consumer electronics retailer.
Investors had worried that Blockbuster would dip into its credit facility to help finance the acquisition, according to Reuters.