wsj_0811.xml
WSJ891027-0084
WSJ891027-0084
=
891027
=
891027
891027-0084
.
891027-0084
.
Financing
Business
:
@
Blockbuster
Entertainment
Corp.
Financing
Business
:
@
Blockbuster
Entertainment
Corp.
10/27/89
10/27/89
10/27/89
WALL
STREET
JOURNAL
(
J
)
WALL
STREET
JOURNAL
(
J
)
BV
BV
BOND
MARKET
NEWS
(
BON
)
BOND
MARKET
NEWS
(
BON
)
BLOCKBUSTER
ENTERTAINMENT
CORP.
said
it
raised
$
92
million
from
an
offering
of
liquid
yield
option
notes
.
The
gross
proceeds
from
the
sale
of
the
notes
,
which
will
be
due
on
Nov.
1
,
2004
,
will
be
used
to
reduce
existing
debt
and
for
general
corporate
purposes
,
the
company
said
.
The
debt
reduction
is
expected
to
save
the
Fort
Lauderdale
,
Fla.
home
video
concern
about
$
2
million
a
year
in
interest
expense
.
The
zero-coupon
subordinated
notes
have
no
periodic
interest
payments
.
Each
note
is
being
offered
at
$
308.32
per
$
1,000
principal
amount
at
maturity
,
representing
an
8
%
yield
to
maturity
.
In
addition
,
each
note
can
be
converted
into
Blockbuster
Entertainment
common
stock
at
a
rate
of
13.851
shares
per
note
.
Merrill
Lynch
Capital
Markets
Inc.
is
the
sole
underwriter
for
the
offering
.
The
notes
will
have
a
principal
amount
of
$
300
million
at
maturity
.
Blockbuster
shares
closed
yesterday
at
$
18.75
,
down
$
1.125
,
in
New
York
Stock
Exchange
trading
.