GameStop Completes Voluntary Early Redemption of Senior Notes

Rhea-AI Summary

GameStop Corp. (NYSE: GME) announced the completion of a voluntary early redemption of $216.4 million in principal of its 10% Senior Notes due 2023 on April 30, 2021. This redemption eliminated the company's long-term debt, further strengthening its balance sheet. GameStop is a leading retailer of games and entertainment products, transitioning its business model towards e-commerce alongside its physical stores.

Positive

• Elimination of $216.4 million in long-term debt enhances financial stability.
• Strengthened balance sheet may facilitate future growth opportunities.

Negative

• None.

Elimination of Long-Term Debt Further Strengthens Company’s Balance Sheet and Supports Transformation

GRAPEVINE, Texas, May 03, 2021 (GLOBE NEWSWIRE) -- GameStop Corp. (NYSE: GME) (“GameStop” or the “Company”) today announced that on April 30, 2021 it completed its voluntary early redemption of $216.4 million in principal amount of its 10.0% Senior Notes due 2023. This voluntary early redemption covered the entire amount of the outstanding 10% Senior Notes, which represented all of the Company’s long-term debt.

About GameStop

GameStop, a Fortune 500 company headquartered in Grapevine, Texas, is a leading specialty retailer offering games and entertainment products through its ecommerce properties and thousands of stores. Visit www.GameStop.com to explore our products and offerings. Follow @GameStop and @GameStopCorp on Twitter and find us on Facebook at www.facebook.com/GameStop.

Cautionary Statement Regarding Forward-Looking Statements - Safe Harbor

This press release contains “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally, including statements about expected benefits from debt reduction, include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the SEC including, but not limited to, the Company’s Annual Report on Form 10-K for the fiscal year ended January 30, 2021, filed with the SEC on March 23, 2021.  All filings are available at www.sec.gov and on the Company’s website at www.GameStop.com.

Contacts

GameStop Investor Relations
817-424-2001
investorrelations@gamestop.com

GameStop Public Relations
Joey Mooring
joeymooring@gamestop.com

or

Profile
Greg Marose / Charlotte Kiaie
gamestop@profileadvisors.com

FAQ

What is the recent debt elimination announcement by GameStop?

GameStop announced the voluntary early redemption of $216.4 million in its 10% Senior Notes, resulting in the elimination of all its long-term debt.

How does the debt redemption impact GameStop's financial position?

The debt redemption strengthens GameStop's balance sheet and may open opportunities for future growth.

What is the significance of GameStop's 10% Senior Notes due 2023?

The 10% Senior Notes represented the company’s long-term debt, and their elimination is seen as a critical step in improving financial health.

When did GameStop complete its voluntary early redemption of debt?

GameStop completed its voluntary early redemption of the debt on April 30, 2021.