Movie Gallery met Tues. with lenders in N.Y., hoping to secure $9...

$900 million senior secured credit facility made up of a $100 million revolving credit facility expected to be fully available at closing, a $525 million first lien term loan, a $25 million synthetic letter of credit facility and a $250 million 2nd lien term loan, it said. Proceeds also would go to replace existing letters of credit, working capital, pay fees and expenses from the transaction and other “general corporate purposes,” Movie Gallery said. The proposed credit facilities will have a 5-year maturity. Movie Gallery expects the transaction to close by March 15, it said. Goldman Sachs Credit Partners is acting as sole lead arranger. Movie Gallery also announced preliminary financial results for its Q4 and fiscal year ended Dec. 31 but warned they're “subject to change as a result of normal year-end reconciliations and accounting adjustments.” The company expects overall comparable Q4 revenue to fall 2.9%, with comparable sales at its Movie Gallery-branded stores down only 0.3% but those at Hollywood Video-branded stores down 4.1%. The company expects to report fiscal year sales of $2.54 billion, including $868 million from Movie Gallery stores, $1.35 billion from Hollywood Video stores and $325 million from Game Crazy locations. It also expects operating income of $24 million for Q4 and $102 million for 2006. The company expects to announce final Q4 and 2006 results in March, it said.