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03.08.26 - 13:06
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GameStop Shares Plunge As $1.4 Billion Debt-For-Equity Swap Threatens Dilution (ZeroHedge)
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GameStop Shares Plunge As $1.4 Billion Debt-For-Equity Swap Threatens Dilution
GameStop shares fell in premarket trading after the company announced it had agreed to exchange about $1.4 billion of zero-coupon convertible notes for Class A shares, allowing the video game retailer to reduce long-term debt without using cash.
The press release stated that the transactions were privately negotiated and cover $400 million of notes due in 2030 and $1 billion due in 2032. After the cancellation, CEO Ryan Cohen's GameStop will have about $2.8 billion of convertible debt remaining, including $1.1 billion due in 2030 and $1.7 billion due in 2032.
The number of shares issued will be based on GameStop's average volume-weighted share price during a 35-session period beginning today, subject to a price floor. The exchange is expected to close around September 23.
GameStop warned:
The Company expects that some or all of the Existing Noteholders that participate in the Exchange may purchase or sell shares ...
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03.08.26 - 12:06
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GameStop Announces Private Exchange of $1.4 Billion of Convertible Senior Notes for Equity (Business Wire)
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GRAPEVINE, Texas--(BUSINESS WIRE)--GameStop Corp. (NYSE: GME) (“GameStop”) today announced that it has agreed to exchange approximately $1.4 billion aggregate principal amount of its outstanding convertible senior notes for shares of its Class A common stock (the “Common Stock”), pursuant to privately negotiated exchange agreements (the “Exchange Agreements”) entered into with certain existing holders (the “Existing Noteholders”) of its 0.00% Convertible Senior Notes due 2030 (the “2030 Notes”) and 0.00% Convertible Senior Notes due 2032 (the “2032 Notes”). The Existing Noteholders are exchanging approximately $400 million aggregate principal amount of 2030 Notes and $1.0 billion aggregate principal amount of 2032 Notes (collectively, the “Exchange Notes”).
Pursuant to the Exchange Agreements, GameStop will issue shares of its Common Stock to the Existing Noteholders for their Exchange Notes (the “Exchange”). GameStop will not receive any cash proceeds from the issuance of ...
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