Senior Convertible Notes
GameStop completed 2 private offerings of convertible senior notes, raising over $4 billion
- GameStop completed 2 private offerings of convertible senior notes, raising over $4 billion
- April 1, 2025: GameStop completed its previously announced private offering, raising a total of $1.48 billion.
- June 17, 2025: GameStop completed the second note offering, raising $2.23 billion. Per the terms of the offering, GameStop raised an additional $0.447 billion on June 23.
- These notes pay zero interest, and can be converted into GME stock under certain conditions
- The maturity of these notes are between 5 and 7 years
- If all notes are fully converted into shares, approximately 140 million shares will be issued
GameStop raised over $4 billion by selling special IOUs called convertible notes to big investors ("qualified institutional buyers" or "QIBs"). The identity of these investors is not known publicly (hence "private offering").
These notes don’t pay interest, but the investors get the option later to turn them into shares if the stock price rises above roughly $29–30. If that happens, new shares would be created. If not, GameStop can repay the money in cash instead.
This structure lets GameStop access a large amount of money now at no interest cost, while delaying any potential dilution unless the stock performs well.
In the meantime, GameStop is generating additional interest income of its own and improving its profitability.
They only convert at a premium. We've done these convertible notes at a 30% plus premium. And essentially we’re borrowing money at 0%. We're giving a conversion right at 30% plus. So, if someone’s willing to lend you money at 0% then it’d be foolish not to take that money, as long as we don’t do something stupid with it.
Comparison of GameStop's note offerings to other similar offerings from other companies
