GameStop shares fall after debt-for-stock exchange announcement
Video game retailer GameStop's GME.N shares fall 11.2% to $19.29.
The company says it will exchange about $1.4 billion of convertible notes for Class A common shares in privately negotiated deals with existing noteholders.
The exchange includes about $400 million of notes due in 2030 and $1 billion of notes due in 2032.
GameStop says the deal will eliminate about $1.4 billion of long-term debt without using cash, though the company will receive no cash proceeds.
The deal is expected to close around September 23; the number of shares will depend partly on GameStop's average volume-weighted price over 35 trading days from August 3.
Up to last close, the stock has risen about 8.2% in the last 12 months.
GME•
