GameStop Announces Voluntary Early Redemption of Senior Notes
November 10 2020 - 4:05PM
GameStop Corp. (NYSE: GME), today announced that
it will redeem $125 million in principal amount of its 6.75% Senior
Notes due 2021 (the “Notes”) on December 11, 2020. This voluntary
early redemption covers approximately 63% of the outstanding Notes.
Notes selected for redemption will be redeemed
at a redemption price of 100% of their principal amount, plus
accrued and unpaid interest up to, but excluding, the redemption
date of December 11, 2020.
The selection of Notes for redemption will be
made by U.S. Bank National Association, as trustee, on a pro rata
basis, by lot or by other method the trustee considers fair and
appropriate. Notes selected for redemption are to be surrendered to
the trustee in exchange for the payment of the redemption price as
more fully described in the notice of redemption sent to the
registered holders of Notes selected for redemption.
Jim Bell, GameStop’s chief financial officer,
said, “The voluntary early redemption of $125 million in senior
notes is consistent with our strategy to take actions that
strengthen and enhance our balance sheet, improve our debt profile
and optimize our capital structure. Over the past 18
months, we have remained steadfast in our focus on creating a more
efficient business model that, despite the impacts of a global
pandemic, optimizes working capital, generates free cash flow and
will benefit from future growth in video gaming and entertainment.
Using cash generated from operations to reduce our outstanding debt
is reflective of our success in transforming our business model and
marks progress toward positioning GameStop for sustained long-term
profitable growth.”
About GameStopGameStop Corp., a
Fortune 500 company headquartered in Grapevine, Texas, is the
world’s largest video game retailer, operates over 5,000 stores
across 10 countries, and offers the best selection of new and
pre-owned video gaming consoles, accessories and video game titles,
in both physical and digital formats. GameStop also offers fans a
wide variety of POP! vinyl figures, collectibles, board games and
more. Through GameStop’s unique buy-sell-trade program, gamers can
trade in video game consoles, games, and accessories, as well as
consumer electronics for cash or in-store credit. The company's
consumer product network also includes www.gamestop.com and Game
Informer® magazine, the world's leading print and digital video
game publication.
General information about GameStop
Corp. can be obtained at the Company’s corporate website.
Follow @GameStop and @GameStopCorp on Twitter and
find GameStop on Facebook at www.facebook.com/GameStop
Cautionary Statement Regarding
Forward-Looking Statements - Safe
HarborThis press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements are based upon management’s
current beliefs, views, estimates and expectations, including as to
the Company’s industry, business strategy, goals and expectations
concerning its market position, future operations, margins,
profitability, capital expenditures, liquidity and capital
resources and other financial and operating information, including
expectations as to future operating profit improvement. Such
statements include without limitation those about the Company’s
financial results, expectations and other statements that are not
historical facts. Forward-looking statements are subject to
significant risks and uncertainties and actual developments,
business decisions and results may differ materially from those
reflected or described in the forward-looking statements. The
following factors, among others, could cause actual results to
differ materially from those reflected or described in the
forward-looking statements: macroeconomic pressures, including the
effects of COVID-19 on consumer spending and our ability to keep
stores open; the impact of the COVID-19 pandemic on the Company’s
business and financial results; the economic conditions in the U.S.
and certain international markets; the cyclicality of the video
game industry; the Company’s dependence on the timely delivery of
new and innovative products from its vendors; the impact of
technological advances in the video game industry and related
changes in consumer behavior on the Company’s sales; the Company’s
ability to keep pace with changing industry technology and consumer
preferences; the impact of international crises and trade
restrictions and tariffs on the delivery of the Company’s products;
the Company’s ability to obtain favorable terms from its suppliers;
the international nature of the Company’s business; the Company’s
dependence on sales during the holiday selling season; fluctuations
in the Company’s results of operations from quarter to quarter; the
Company’s ability to de-densify its global store base; the
Company’s ability to renew, terminate or enter into new leases on
favorable terms; the competitive nature of the Company’s industry;
the Company’s ability to attract and retain executive officers and
key personnel; the adequacy of the Company’s management information
systems; the Company’s reliance on centralized facilities for
refurbishment of its pre-owned products; the Company’s ability to
react to trends in pop culture with regard to its sales of
collectibles and our dependence on licensed products for a
substantial portion of such sales; the Company’s ability to
maintain security of its customer, employee or company information;
potential harm to the Company’s reputation; the Company’s ability
to maintain effective control over financial reporting; the
Company’s vendors’ ability to provide marketing and merchandise
support at historical levels; restrictions on the Company’s ability
to purchase and sell pre-owned video games; potential decrease in
popularity of certain types of video games; changes in the
Company’s global tax rate; potential future litigation and other
legal proceedings; changes in accounting rules and regulations; and
the Company’s ability to comply with federal, state, local and
international law. Additional factors that could cause our results
to differ materially from those reflected or described in the
forward-looking statements can be found in GameStop's Annual Report
on Form 10-K for the fiscal year ended February 1, 2020 the
subsection entitled “Risks Related to Our Business” of Item 1A of
which has been amended and restated in GameStop’s Current Report on
Form 8-K filed on June 5, 2020 and our other filings made from time
to time with the SEC and available at the SEC's Internet site at
http://www.sec.gov or http://investor.GameStop.com. Forward-looking
statements contained in this release speak only as of the date of
this release. The Company undertakes no obligation to publicly
update any forward-looking statement, whether as a result of new
information, future developments or otherwise, except as may be
required by any applicable securities laws.
ContactGameStop Corp. Investor
Relations(817) 424-2001investorrelations@gamestop.com
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