GameStop has agreed to exchange approximately $1.4 billion in outstanding convertible senior notes for shares of its Class A common stock, the company announced.
The debt exchange is intended to reduce long-term debt without spending any cash. According to GameStop, the deal was structured through privately negotiated agreements with a subset of existing noteholders.
Noteholder details and timeline
The transaction involves approximately $400 million of GameStop's 0.00% Convertible Senior Notes due 2030 and approximately $1.0 billion of its 0.00% Convertible Senior Notes due 2032.
Amount of 2030 Notes expected to remain outstanding after the exchange closes
Following the close of the exchange, which is expected to occur on or about September 23, 2026, approximately $1.1 billion in 2030 Notes and
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, according to GameStop.
GameStop stated that participating noteholders may buy or sell shares in open market transactions or use derivatives to hedge or unwind positions, which could materially affect the market price of the stock or notes.
GameStop shares slipped 5.91% to $20.44 ahead of Monday's open.
