Key Takeaways
- GameStop plans to raise $1.3 billion through a convertible notes offering.
- Proceeds may be used to acquire Bitcoin under GameStop's investment policy.
- The offering targets qualified institutional buyers under Rule 144A.
GameStop Corp. announced Wednesday that it intends to raise $1.3 billion through a private offering of 0.00% Convertible Senior Notes due 2030, with the potential for an additional $200 million if initial purchasers exercise an over-allotment option.
The offering is subject to market conditions and is limited to qualified institutional buyers under Rule 144A of the Securities Act.
Terms of the notes
The notes, which carry no regular interest and do not accrete in value, will mature on April 1, 2030.
Upon conversion, GameStop may settle in cash, Class A common stock, or a mix of both.
Specific terms, including the conversion rate, will be finalized at pricing.
The conversion price will be based on the volume-weighted average stock price between 1:00 and 4:00 p.m. EDT on pricing day.
Use of proceeds
Proceeds from the offering are earmarked for general corporate purposes, including potential Bitcoin purchases in line with the company’s investment policy.
While GameStop has not specified how much Bitcoin it may acquire, the announcement marks another step toward integrating Bitcoin into its corporate treasury.
Registration status
The notes will be unsecured obligations and are not being registered under the Securities Act.
This means they cannot be sold or offered in the U.S. without registration or an applicable exemption.
Company overview
GameStop, headquartered in Grapevine, Texas, operates a global retail business focused on games and entertainment through physical stores and online platforms.
