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Investing.com -- GameStop Corp . (NYSE:GME) stock fell 6% in after-hours trading on Wednesday after the video game retailer announced plans to offer $1.75 billion in convertible senior notes.
The company said it intends to offer the 0.00% Convertible Senior Notes due 2032 in a private offering to qualified institutional buyers. GameStop also plans to grant initial purchasers an option to buy up to an additional $250 million in notes within a 13-day period after issuance.
According to the announcement, the notes will be general unsecured obligations that won’t bear regular interest, and the principal amount will not accrete. They will mature on June 15, 2032, unless converted, redeemed, or repurchased earlier.
Upon conversion, GameStop said it will pay or deliver cash, shares of its Class A common stock, or a combination of both, at its discretion. The initial conversion rate and other terms will be determined when the offering is priced.
The company intends to use the proceeds for general corporate purposes, including investments aligned with its Investment Policy and potential acquisitions.
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