Movie Gallery to start roadshow Monday for $325 million seven-year floater

By Paul A. Harris

St. Louis, April 15 - Movie Gallery Inc. will begin a roadshow on Monday for its $325 million offering of seven-year senior floating-rate notes, according to a market source.

Pricing is expected on April 25.

Wachovia Securities has the books for the Rule 144A/Regulation S offering. Merrill Lynch & Co. and CIBC World Markets are the co-managers.

The notes will be non-callable for two years.

Proceeds will be used to fund part of the acquisition of Hollywood Entertainment Corp., to finance a tender offer for all of Hollywood Entertainment's 9 5/8% senior subordinated notes due 2011 and to repay certain existing debt of Hollywood Entertainment and Movie Gallery.

Movie Gallery is a Dothan, Ala.-based video rental chain.

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