Blockbuster Entertainment Corp., one of two backers of Viacom Inc.’s bid for Paramount Communications Inc., said it has boosted its revolving credit line to $ 1 billion.
In a filing with the Securities and Exchange Commission, Blockbuster said lenders have agreed to make advances of up to $ 1 billion on an unsecured basis for a term of 40 months.
This will apparently triple the dollar amount of the old agreement.
The new pact amends an October 1992 agreement with lenders, the filing said. Blockbuster said then that it had a $ 325 million revolving line of credit.
Blockbuster officials could not be reached for comment.
Viacom has been said to be engaged in talks with Blockbuster and Nynex Corp. to increase their combined $ 1.8 billion investment in Viacom.
Paramount’s board of directors agreed last week to be acquired by QVC Network Inc., and advised its shareholders to embrace QVC’s bid offer over Viacom’s.
The credit agreement is among certain financial institutions and Bank of America National Trust and Savings Assn., the filing said.