GameStop exchanges $1.4 billion in convertible notes for stock
GameStop has agreed to exchange approximately $1.4 billion in outstanding convertible senior notes for shares of its Class A common stock, reducing long-term debt without using cash. The deal involves converting $400 million of the company's 2030 Notes and $1 billion of its 2032 Notes through privately negotiated agreements with existing noteholders. As part of the exchange, GameStop will issue shares in lieu of the notes, with no immediate cash outlay. The number of shares to be issued is based on a reference period's volume-weighted average price and includes a per-share floor. After closing this transaction, $1.1 billion in 2030 Notes and $1.7 billion in 2032 Notes will remain outstanding. The exchange is expected to close by September 23, 2026. GameStop warned that participating noteholders may engage in open market transactions or derivative strategies related to their positions, which could impact the stock price and note valuations significantly.
Tickers: $GME