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GameStop agrees to swap $1.4B of convertible debt for stock
The exchange is expected to close on Sept. 23, 2026, with the share count set by GameStop’s average stock price over a 35-day window starting Aug. 3.
GameStop has agreed to reduce long-term debt by swapping about $1.4 billion of convertible senior notes for shares of its Class A common stock, according to Yahoo Finance.
In privately negotiated agreements with existing holders of its 0.00% Convertible Senior Notes due 2030 and 2032, noteholders will exchange about $400 million of the 2030 notes and $1.0 billion of the 2032 notes for shares. After the transaction closes, the exchanged notes will be canceled, leaving roughly $1.1 billion of 2030 notes and $1.7 billion of 2032 notes outstanding, while GameStop’s total long-term debt falls by about $1.4 billion.
GameStop will issue new shares to the noteholders, and the number of shares will be determined based on the company’s stock average price over a 35-day window beginning Aug. 3, subject to a price floor. The exchange is expected to close on Sept. 23, 2026, diluting existing shareholders.
The move follows GameStop’s reported financial strength, including its highest quarterly net income in its history for the first quarter of fiscal 2026. Yahoo Finance reports net income of $389.6 million and net sales growth of 14% year over year to $835.3 million, with GameStop ending Q1 with $9.7 billion in cash, marketable securities, digital assets and related receivables, and collateral pledged for a derivative asset.