H’w’d Ent. sets stock offering

Hollywood Entertainment Corp. plans to raise $ 20 million to $ 25 million in a public offering of its common stock to largely finance its acquisition of the Video Central superstore chain.

Hollywood, a Portland, Ore., video rental company, said in September that it would buy the 33-store Video Central for $ 30.5 million from the H.E. Butt Grocery Co. in Texas.

The deal calls for full payment by March 25.

Hollywood said it would use existing cash to cover the difference between the offering’s proceeds and the purchase price. The company said tapping the stock market will allow it to go ahead with the acquisition without worries about building up its debt load.

“We prefer to finance the Video Central acquisition with equity instead of debt,” Hollywood chairman Mark J. Wattles said in a statement.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety

Loading