Movie Gallery refinancing senior credit |
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Tue, 06 Feb 2007 14:57
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DOTHAN, Ala. (AFX) - Movie Gallery Inc., the country's second-largest movie and video game rental chain, said Tuesday that it is refinancing an existing senior secured credit facility.The company entered a financing commitment with Goldman Sachs Credit Partners LP, which will act as sole lead arranger.Movie Gallery said it will use the funds from the proposed facilities to refinance its existing senior secured credit facility, replace existing letters of credit, provide for working capital, pay fees and expenses associated with the proposed credit facilities and for other general corporate purposes.Struggling with sluggish rental revenue and product sales as well as heavy debt expense following last year's acquisition of Hollywood Entertainment, Movie Gallery posted a loss of $10.7 million for the first nine months of 2006.The facilities are expected to have a five-year maturity.The transaction is expected to close in the first quarter.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Movie Gallery 3Q loss widens 