TradingKey – On August 3 Eastern Time, GameStop ( GME) shares fell over 14%, hitting a near two-year low.
GameStop reportedly announced that it has reached agreements with certain convertible bondholders to exchange approximately $1.4 billion of outstanding convertible bonds for Class A common stock, relieving the company of a major long-term debt burden. However, this move may dilute the equity of existing shareholders.
GameStop price chart, Source: TradingView
The exchange involves approximately $400 million of 0% convertible bonds due in 2030 and approximately $1 billion of 0% convertible bonds due in 2032. The transaction does not involve any cash payments; GameStop will issue Class A common stock directly to the respective creditors…
