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GameStop shares rise after amending convertible note deal
GameStop Corp. shares rose over 4% on Monday following the announcement of preliminary second-quarter results and an amendment to its convertible note exchange agreement.
The company revised its $1.4 billion zero-coupon convertible debt swap to include a $358.4 million cash component. This adjustment limits the issuance of new shares to approximately 55.5 million, representing about 12% of outstanding shares, and prevents further dilution. Under the new terms, noteholders will receive 73% of the deal in shares and 27% in cash.
In its preliminary earnings preview, GameStop projected net sales between $780 million and $800 million, a decrease from $972.2 million the previous year. This decline is attributed to the previous year's Nintendo Switch 2 launch, planned store closures, and the sale of its French operations. However, net income is expected to rise to between $290 million and $310 million, up from $168.6 million a year ago. This profit increase includes approximately $238 million in net gains from an eBay Inc. derivative and equity stake.
Entities
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Net income is expected to be between $290 million and $310 million. www.ibtimes.com.au
- [○ 1 SOURCE] Expected cash, cash equivalents, and marketable securities are between $5.05 billion and $5.07 billion. www.ibtimes.com.au
- [○ 1 SOURCE] GameStop expects net sales between $780 million and $800 million for the second quarter. www.ibtimes.com.au
- [○ 1 SOURCE] The company noted that noteholders may purchase or sell shares to adjust positions or close short positions. bitcoinethereumnews.com
- [○ 1 SOURCE] Noteholders will receive 73% of the deal in shares and 27% in cash. bitcoinethereumnews.com
- [● 2 SOURCES] GameStop paid $358.4 million in cash to amend a convertible note exchange deal. bitcoinethereumnews.com · www.ibtimes.com.au
- [○ 1 SOURCE] Projected operating income is between $150 million and $170 million. www.ibtimes.com.au
- [○ 1 SOURCE] The amended deal limits the issuance of new shares to approximately 55.5 million. bitcoinethereumnews.com