Blockbuster could be LCDX cancellation event, says Barcap

Barclays Capital analysts report in their weekly research that Blockbuster’s newest bond issue whose proceeds will be used to pay down the company’s term loan B, could constitute a LCDS cancellation event.

Blockbuster offered on 17 September $675 million of 11.75% senior secured notes due 2014, upsized from the original amount of $340 million. The notes gained three to four points in the secondary market, analysts say, which strikes a good note for future bond-for-loan deals.