Log in
  

Hollywood Entertainment Completes Bank Amendment

5 Jun, 2001 By: Hive News


Hollywood Entertainment Corporation on Tuesday reported the successfulcompletion of an amendment to its revolving credit facility, according to a Hollywood Video press release

The amendment extends the maturity of the facility from Sept. 5, 2002 to Dec. 23, 2003. A new amortization schedule has been put in place "which fits with the company's current business plan and allows the companysignificant flexibility to conduct its operations," says the release.

The new amortization payment schedule, which brings the current $255.5 million commitment down to zero at maturity in 2003, is as follows:

* Third Quarter 2001 -- $1.5 million
* Fourth Quarter 2001 -- $12.5 million
* First Quarter 2002 -- $20.0 million
* Second Quarter 2002 -- $20.0 million
* Third Quarter 2002 -- $20.0 million
* Fourth Quarter 2002 -- $40.0 million
* First Quarter 2003 -- $25.0 million
* Second Quarter 2003 -- $25.0 million
* Third Quarter 2003 -- $25.0 million
* Fourth Quarter 2003 -- $66.5 million

The total consideration paid to the lenders to complete the amendment was an up-front fee of 1.5% of the current outstanding principal balance. The interest rate will step down if certain performance targets are met.

The amendment received the necessary unanimous approval by the 19 lenders in the credit facility.

"We are extremely pleased with the outcome of this amendment process," said David Martin, c.f.o., Hollywood Entertainment. "This new amortization schedule provides the financial flexibility necessary to take advantage of the strong industry environment we see in the years ahead. We believe that our cash flow will be more than sufficient to make appropriate investments in our business and meet this new amortizationschedule."

Stay tuned to Hive updates from Video Store Magazine.

Add Comment