According to Golden Finance, well-known video game retailer GameStop (NYSE: GME) recently announced a major financing decision, significantly increasing the size of the convertible senior notes it plans to issue to 2.25 billion US dollars.
It is learned that GameStop has determined the private placement price of its convertible senior notes due in 2032 with an interest rate of 0.00%, with a total principal amount of 2.25 billion US dollars. The company also grants the initial purchasers an option, allowing them to purchase an additional principal amount of up to 450 million US dollars of the notes within 13 days from the initial issuance date of the notes. After calculation, after deducting the relevant expenses, if only the base issuance scale is completed, GameStop is expected to obtain a net income of approximately 2.23 billion US dollars. Once the initial purchasers fully exercise the options, the net income is expected to increase to approximately 2.68 billion US dollars.
Regarding the use of this fund, GameStop stated that it will be used for general corporate purposes, including investment activities and potential acquisition plans. This move may bring new changes to the company’s future business expansion, market layout and other aspects, and has also drawn high attention from investors and industry observers to its subsequent strategic direction.
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