GameStop amends debt exchange to include cash settlement

GameStop Corp. has altered the terms of its exchange agreements with convertible senior note holders. The amendments will now include a cash settlement alongside the previously agreed-upon stock exchange. The company is exchanging approximately $1.4 billion in aggregate principal amount of notes, which were due in 2030 and 2032, for a mix of shares and cash.

Of the total consideration, around 55.5 million shares of common stock will be given, accounting for about 73% of the overall payment. The remaining portion of the exchange will consist of roughly $358.4 million in cash, making up the remaining 27%. The total number of shares to be exchanged remains fixed. GameStop expects to cover the cash portion from its current cash reserves.

After the exchange, around $1.1 billion of the 2030 notes and $1.7 billion of the 2032 notes will still be outstanding, totaling approximately $2.8 billion in aggregate. The exchange is now projected to conclude on or about September 3, 2026, contingent on normal closing conditions. Notably, noteholders have the option to buy or sell common shares or engage in derivative transactions to modify their positions, which could influence the stock's market price or the notes' value. This report is AI-generated and has been reviewed by an editor.