Giving Hollywood Some Credit5 Dec, 2002 By: Hive News
Hollywood Entertainment Corp., owner of Hollywood Video, announced it has received a new senior credit facility consisting of a $200 million loan and a $50 million revolving credit facility, each maturing in 2008.
UBS Warburg LLC is underwriting the new credit.
The monies -- added to Hollywood's previously announced planned sale of $200 million of senior subordinated notes due 2001 -- will be used to repay amounts outstanding under existing credit facilities, redeem the balance of the existing 10.625 percent senior subordinated notes due 2004, as well as for general corporate purposes.
The deal is subject to various conditions, including the sale of the new senior subordinated notes and the application of the proceeds of the sale to retire a portion of its existing notes. Unless extended, the commitment will expire January 31, 2003.