UBS Spotlights Hollywood Credit

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UBS Spotlights Hollywood Credit

UBS Warburg is fully underwriting a five-year, $250 million credit for Hollywood Entertainment Corp., which will refinance existing debt. The line consists of a $200 million term loan and a $50 million revolver. Hollywood's existing $175 million facility is also led by UBS with a $150 million "B" piece priced at LIBOR plus 4%, as well as a $25 million revolver priced at LIBOR plus 31/ 2%. The new term piece is expected to extend the maturity profile of Hollywood's capital structure and improve the company's medium term liquidity position, according to Moody's Investors Service, which rated the credit Ba3. The new bank deal is in concurrence with plans for a sale of $200 million in senior subordinated notes due 2011. Wilsonville, Ore.-based Hollywood operates the second largest video chain in the US. Jim Marcum, cfo of Hollywood, and UBS bankers did not return calls.

 

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