GameStop Shares Fall After Company Plans Convertible Notes Offering

Dow Jones06-12

Gamestop shares fell after the company said it plans to offer $1.75 billion worth of convertible notes.

The stock slid 11% to $25.27 after the market closed on Wednesday, ending regular trade down 5%.

The video-game retailer said the notes will be unsecured obligations of Gamestop, won't bear regular interest and are due to mature in June 2032.

The offering is private. Gamestop plans to grant the initial purchasers an option to buy up to $250 million in additional notes within a 13-day period after the notes are issued.

Gamestop plans to use the proceeds for general corporate purposes, including making investments and potential acquisitions, it said.

Starting in early May, Gamestop has bought 4,710 bitcoin. Shares were down Wednesday after the company posted a decline in first-quarter sales.

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Comments

  • dr_balls
    06-12
    dr_balls
    I like the stock 
  • TinyB
    06-12
    TinyB
    So they going to be sitting on 8bil....
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