First Union Capital Markets Corp. has completed syndication of a $125 million revolving credit facility for Movie Gallery Inc., one of the nation's largest video store retailers.
Movie Gallery owns and operates 871 stores and has 130 franchisees and licensees that offer family-oriented, overnight video rentals and sales in 23 states.
The Dothan, Ala.-based retailer plans to use the four-year loan for general corporate purposes, including working capital and additional acquisitions, to refinance existing debt and to finance two recently announced acquisitions - Home Vision and Hollywood Video.
Movie Gallery has been one of the most active consolidators in the home video industry. Sources estimate that by 2005 the industry will generate annual revenues in excess of $21 billion, compared with nearly $15 billion currently. Since its initial public offering in August 1994, Movie Gallery has expanded from 97 stores to its current size, primarily through acquisitions.