UPDATE 2-Blockbuster Q1 beats Street views; warns of sales slide

* Q1 adjusted EPS 19 cents vs 14 cents Street view

* Q1 revenues slide 14 pct

* Shares little changed (Adds analyst comment, debt refinancing, byline)

By Sue Zeidler

LOS ANGELES, May 14 (Reuters) - Blockbuster Inc (BBI.N) posted lower first-quarter earnings but beat expectations as the top U.S. movie rental chain reined in spending.

The company warned that same-store sales would continue to slip in 2009, but said it remained comfortable with its prior full-year outlook.

Blockbuster chief executive Jim Keyes said on a conference call he expects strong title releases to boost results in the summer, but said he remained cautious.

The company said it secured funding for a $250 million amended and extended credit facility and added that the new financing, combined with cost savings and additional cash, provided sufficient liquidity going forward.

On a call with analysts, Keyes said the company can reduce debt by $400 million in the next two years.