Compact Video Files to Sell $55 Million in Debentures

Burbank-based Compact Video said it filed a registration statement with the Securities and Exchange Commission for a public offering of $55 million in subordinated debentures to finance unspecified future acquisitions.

The offering of the debentures, which are a type of bonds, will be arranged by the Drexel Burnham Lambert brokerage firm.

Compact Video, a leading post-production services company in the film and video industries, originally announced the planned offering in March, ostensibly to help pay for its proposed acquisition of Adams Drug, a Rhode Island-based chain.

But Compact Video said it would issue the debt securities regardless of whether the drugstore deal went through, and the proposed acquisition has since been put on hold, said James Bullard, Compact Video’s vice president for finance.