GameStop Corp. has unveiled plans to raise capital through a private placement offering of convertible preferred notes.
The company intends to issue $1.75 billion aggregate principal amount of convertible senior notes to qualified institutional buyers.
Convertible preferred notes are debt securities that can be converted into a predetermined number of the issuing company’s common shares, typically at the holder’s option.
This fundraising strategy allows GameStop to secure financing while potentially offering investors the upside of equity conversion.
The proceeds from the offering are expected to be used for general corporate purposes, which may include strategic initiatives or strengthening the company’s balance sheet.