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Blockbuster Offers Third 'Preferred' Cash Dividend

20 Oct, 2006 By: Erik Gruenwedel

It continues to pay to be a holder of 150,000 shares of Blockbuster Inc.'s 7-1/2% Series A cumulative convertible perpetual preferred stock.

The Dallas-based rental chain announced Oct. 20 it will pay a quarterly cash dividend of $18.75 per share Nov. 15 to holders of the preferred stock (as of Nov. 1), in accordance with terms of the special stock.

Last November, Blockbuster completed a private equity offering of convertible preferred stock realizing gross proceeds of $150 million.

The No. 1 video rental company said it used the funds to repay a portion of its $1.3 billion debt in addition to general corporate purposes.

In July, Blockbuster paid a similar $18.75-per-share cash dividend to 7-1/2% Series A stockholders.

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