Blockbuster sells $675M in notes

San Francisco Blockbuster said Thursday that it has priced a private note offering of $675 million. With the discount factored into the pricing, Blockbuster will be left with $634.5 million.

The notes are at issue price of 94%. The sale of the notes will take place on or around Oct. 1.

The company intends to use the proceeds from the sale of senior secured notes to pay off about $580 million in debt owed to banks.