GameStop Secures New $500 Million ABL Facility with Improved Liquidity and Terms

Rhea-AI Summary

GameStop Corp. (NYSE: GME) announced a new $500 million global asset-based revolving credit facility, aimed at enhancing liquidity and financial flexibility. This five-year facility replaces the previous $420 million facility set to expire in November 2022. The new agreement, which was oversubscribed, offers reduced borrowing costs, lighter covenants, and increased flexibility, reflecting improved investor confidence. Wells Fargo Bank, N.A. acted as Lead Arranger for this significant financing step.

Positive

• New $500 million ABL Facility enhances liquidity.
• Facility provides reduced borrowing costs and lighter covenants.
• Oversubscribed financing indicates strong investor confidence.

Negative

• None.

GRAPEVINE, Texas--(BUSINESS WIRE)-- GameStop Corp. (NYSE: GME) (“GameStop” or the “Company”) today announced that it has entered into a new $500 million global asset-based revolving credit facility (“ABL Facility”) with a syndicate of banks. The new five-year ABL Facility, which was oversubscribed, replaces the Company’s existing $420 million facility due in November 2022. In addition to delivering enhanced liquidity, the new ABL Facility provides for reduced borrowing costs, lighter covenants and more flexibility. Wells Fargo Bank, N.A. acted as Lead Arranger and will serve as Administrative Agent.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211104005188/en/

GameStop Investor Relations

817-424-2001

ir@gamestop.com



GameStop Public Relations

646-386-0091

media@gamestop.com

Source: GameStop Corp.

FAQ

What is the new credit facility amount for GameStop Corp. (GME)?

GameStop Corp. has secured a new $500 million global asset-based revolving credit facility.

When does the previous credit facility for GameStop Corp. expire?

The existing $420 million credit facility is due to expire in November 2022.

Who arranged the new credit facility for GameStop Corp. (GME)?

Wells Fargo Bank, N.A. acted as Lead Arranger for GameStop's new credit facility.

What are the benefits of the new ABL Facility for GameStop Corp. (GME)?

The new ABL Facility offers enhanced liquidity, reduced borrowing costs, lighter covenants, and more flexibility.

Why is the new credit facility important for GameStop Corp. (GME)?

The new credit facility is crucial as it enhances GameStop's financial flexibility and reflects improved investor confidence.