Hollywood Restructures More Debt17 Jan, 2003 By: Hive News
Hollywood Video has closed a deal for new senior secured credit facilities from a syndicate of lenders led by UBS Warburg as the company moves to reduce the cost of its debt, the company announced today.
The new facilities are a $200 million term loan facility and a $50 million revolving credit facility, each maturing in 2008.
Hollywood will use proceeds from the transaction to repay amounts outstanding under its existing credit facilities due in 2004, redeem the remaining outstanding principal amount of its existing 10.625 percent senior subordinated notes due 2004 and for general corporate purposes.
Notice of redemption of the remaining principal amount of the company's existing 10.625 percent senior subordinated notes in the amount of $46.1 million has been delivered to the trustee. The company expects to complete the redemption Feb. 18.
As announced Dec. 18, the company completed the sale of $225 million of 9.625 percent senior subordinated notes due 2011, the proceeds of which were used for to redeem $203.9 million principal amount of the existing 10.625 percent notes that were due in 2004. This redemption was completed today.
"We are very pleased with the execution of these transactions regarding the new bank credit facilities and the sale of the notes,” EVP and CFO Jim Marcum said. “As a result of these transactions, the company has significantly lowered the overall costs of our indebtedness and extended our debt maturities. The completion of these transactions satisfy the company's financing needs for the foreseeable future."