Hollywood Entertainment's bank debt traded last week at 96, up from 90 early in the month. The seller was rumored to be Sumitomo Mitsui Banking Corp., which has reportedly been an especially active seller lately. The buyer could not be ascertained. A bank spokesman declined to comment on trading levels. Hollywood Entertainment, based in Wilsonville, Ore., is the number two video rental business behind Blockbuster. Calls to the company were not returned by press time.
Dealers say the video rental business may face pressures due to the rise of Direct TV and Pay-Per-View. "They're definitely taking a bite out of [video rental]. Over time the concept could be rendered obsolete," one said. The company has a $300 million credit facility that expires next year. Société Générale, Goldman Sachs, and Credit Suisse First Boston are the lead arrangers.