GameStop $GME agreed Monday to exchange approximately $1.4 billion in outstanding convertible senior notes for shares of its Class A common stock, reducing the company's long-term debt without spending any cash.
The video game retailer will cancel $1.4 billion in outstanding notes without using any cash, though shares fell in premarket trading
GameStop $GME agreed Monday to exchange approximately $1.4 billion in outstanding convertible senior notes for shares of its Class A common stock, reducing the company's long-term debt without spending any cash.
The deal involves about $400 million of its 0.00% Convertible Senior Notes due 2030 and $1.0 billion of its 0.00% Convertible Senior Notes due 2032, and was structured through privately negotiated agreements with a subset of existing noteholders, the company said.
Under the terms of the deal, GameStop will hand over Class A common stock to participating noteholders in lieu of the outstanding notes, with no cash changing hands in the process, the company said. After the exchange closes, approximately $1.1 billion in 2030 Notes and $1.7 billion in 2032 Notes will remain outstanding.
The number of shares to be issued will be determined in part by the average volume-weighted average price of GameStop stock over a 35 consecutive trading day reference period beginning Monday, subject to a per share price floor, the company said. The exchange is expected to close on or about September 23, 2026.
GameStop noted that some or all of the participating noteholders may buy or sell shares of its common stock in open market transactions, or enter into or unwind derivative transactions, to hedge or unwind their positions. The company said those activities could affect the market price of the stock or the notes in a material way.
GameStop shares slipped 5.91% to $20.44 ahead of Monday's open.
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