Blockbuster Announces Amendment of Revolving Credit and Term Loan Facility

Blockbuster Announces Amendment of Revolving Credit and Term Loan Facility

DALLAS, April 3 // PRNewswire-FirstCall // -- Blockbuster Inc. (NYSE: BBI, BBI.B), a leading global provider of media entertainment, today announced the company, JPMorgan and a group of lenders, led by Monarch Alternative Capital LP and Silver Point Capital, L.P., have completed the amendment of the company's revolving and term loan facility. The amendment includes commitments from lenders for a $250 million revolving loan refinancing with a maturity date on September 30, 2010, which commitments the Company expects to fund in May upon satisfying the conditions set forth in the amendment.

"The completion of the amendment is an important milestone for Blockbuster," stated Jim Keyes, Blockbuster Chairman and CEO. "We believe the amount that will be available under this extended facility, combined with our cash flow from operations and our cost saving initiatives, will provide the company with adequate liquidity to manage through the challenging macro economic environment and constrained capital markets. We would like to thank JPMorgan for their hard work and ongoing efforts. We would also like to express our appreciation to Monarch and Silver Point and our other lenders. We believe the tremendous support received from our lenders serves as an endorsement of Blockbuster and the company's transformation into a multi-channel provider of media entertainment."

Additionally, the lenders have agreed to waive any default arising from a 'going concern' qualification for the fiscal year 2008 as part of the terms of the credit facility.

Forward Looking Statements

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may also be included from time to time in our other public filings, press releases, our website and oral and written presentations by management. Specific forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and include, without limitation, words such as "may," "will," "expects," "believes," "anticipates," "plans," "estimates," "projects," "predicts," "targets," "seeks," "could," "intends," "foresees" or the negative of such terms or other variations on such terms or comparable terminology. Similarly, statements that describe our strategies, initiatives, objectives, plans or goals are forward-looking. These forward-looking statements are based on management's current intent, belief, expectations, estimates and projections. These statements are not guarantees of future performance and involve risks, uncertainties, assumptions and other factors that are difficult to predict. Therefore, actual results may vary materially from what is expressed in or indicated by the forward-looking statements. The risk factors set forth under "Item 1A. Risk Factors" in our Annual Reports on Form 10-K and other matters discussed from time to time in our filings with the Securities and Exchange Commission, including the "Disclosure Regarding Forward-Looking Information" and "Risk Factors" sections of our Quarterly Reports on Form 10-Q, among others, could affect future results, causing these results to differ materially from those expressed in our forward-looking statements. Currently, the risks and uncertainties that may most directly impact our future results include (i) our impending debt maturities and whether or not our efforts to refinance this debt are successful; (ii) whether or not we are able to otherwise improve our liquidity position by managing cash and minimizing our need for external capital; and (iii) whether or not we will receive a going concern opinion from our independent registered public accounting firm, which if not cured or waived, could result in a default under our credit agreement and in the acceleration of the outstanding debt there-under and under other of our debt agreements and certain of our leases. In the event that the risks disclosed in our public filings and those discussed above cause results to differ materially from those expressed in our forward-looking statements, our business, financial condition, results of operations or liquidity could be materially adversely affected and investors in our securities could lose part or all of their investments. Accordingly, our investors are cautioned not to place undue reliance on these forward-looking statements because, while we believe the assumptions on which the forward-looking statements are based are reasonable, there can be no assurance that these forward-looking statements will prove to be accurate. Further, the forward-looking statements included in this release and those included from time to time in our other public filings, press releases, our website and oral and written presentations by management are only made as of the respective dates thereof. We undertake no obligation to update publicly any forward-looking statement in this release or in other documents, our website or oral statements for any reason, even if new information becomes available or other events occur in the future.

About Blockbuster

Blockbuster Inc. is a leading global provider of in-home movie and game entertainment, with over 7,400 stores throughout the Americas, Europe, Asia and Australia.

SOURCE Blockbuster Inc.



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