SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
(State or other jurisdiction
(Address, including Zip Code, and Telephone Number, including Area Code, of Registrant’s Principal Executive Offices)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Name of each exchange
on which registered
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
|Item 1.02|| |
Termination of a Material Definitive Agreement.
The information set forth in Item 2.04 of this Current Report on Form 8-K is incorporated by reference herein.
|Item 2.04|| |
Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.
On April 13, 2021, GameStop Corp. (the “Company”) issued an irrevocable notice of redemption to redeem in full its outstanding 10.00% Senior Notes due 2023 (the “Notes”) in the aggregate principal amount of $216,422,000, which are governed by that certain Indenture dated as of July 6, 2020 (the “Indenture”) among the Company, the subsidiary guarantors party thereto and U.S. Bank National Association, as Trustee and Notes Collateral Agent. The redemption date will be April 30, 2021 (the “Redemption Date”) and the redemption price will be equal to 100% of the principal amount of the Notes being redeemed plus the Applicable Premium (as defined in the Indenture) then in effect plus accrued but unpaid interest thereon to, but not including, the Redemption Date. Upon the redemption by the Company of the Notes, the Indenture will be discharged and cease to be of further effect except as to rights thereunder. The Company expects to pay the redemption price for the Notes with cash on hand.
|Item 7.01|| |
Regulation FD Disclosure.
On April 13, 2021, the Company issued a press release announcing the redemption of the Notes, a copy of which is furnished with this Current Report on Form 8-K as Exhibit 99.1.
The information furnished herewith pursuant to this Item 7.01 of this Current Report on Form 8-K shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document under the Securities Act of 1933, as amended or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
|Item 9.01|| |
Financial Statements and Exhibits.
|99.1||Press Release issued by GameStop Corp., dated April 13, 2021.|
|104||Cover Page Interactive Data File (embedded within the Inline XBRL document).|
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|Date: April 13, 2021||By:|
|Title:||Senior Vice President and Interim Chief Financial Officer|
GameStop Announces Voluntary Early Redemption of Senior Notes
Elimination of Long-Term Debt Will Further Strengthen Companys Balance Sheet and Support Transformation
Grapevine, Texas (April 13, 2021) - GameStop Corp. (NYSE: GME), today issued an irrevocable notice of redemption to redeem $216.4 million in principal amount of its 10.0% Senior Notes due 2023 (the Notes) on April 30, 2021. This voluntary early redemption covers the entire amount of the outstanding Notes.
Notes will be redeemed by the Company using cash on hand, at a redemption price of 100% of their principal amount, plus accrued and unpaid interest up to, but excluding, the redemption date of April 30, 2021, plus the applicable premium due to holders of the Notes in connection with an early redemption.
Notes are to be surrendered to U.S. Bank National Association (the Trustee) in exchange for the payment of the redemption price as more fully described in the notice of redemption sent to the registered holders of Notes.
GameStop, a Fortune 500 company headquartered in Grapevine, Texas, is a leading specialty retailer offering games and entertainment products through its E-Commerce properties and thousands of stores. Visit www.GameStop.com to explore our products and offerings. Follow @GameStop and @GameStopCorp on Twitter and find us on Facebook at www.facebook.com/GameStop.
Cautionary Statement Regarding Forward-Looking Statements - Safe Harbor
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon managements current beliefs, views, estimates and expectations, including as to the Companys industry, business strategy, goals and expectations concerning its market position, strategic and transformation initiatives, future operations, margins, profitability, comparable store growth, capital expenditures, liquidity, capital resources, expansion of technology expertise, and other financial and operating information, including expectations as to future operating profit improvement. Such statements include without limitation those about the Companys expectations for fiscal 2021, future financial and operating results, projections and other statements that are not historical facts. Forward-looking statements are subject to significant risks and uncertainties and actual developments, business decisions, outcomes and results may differ materially from those reflected or described in the forward-looking statements. The following factors, among others, could cause actual developments, business decisions, outcomes and results to differ materially from those reflected or described in the forward-looking statements: macroeconomic pressures, including the effects of the COVID-19 pandemic on consumer spending and the Companys ability to keep stores open; the impact of the COVID-19 pandemic on the Companys business and financial results; the economic conditions in the U.S. and certain international markets; the amounts devoted to strategic investments, including in E-Commerce capabilities and other business transformation initiatives, and failure to achieve anticipated profitability increases and benefits from such initiatives within the expected time-frames or at all; the cyclicality of the video game industry; the Companys dependence on the timely delivery of new and innovative products from its vendors; the impact of technological advances in the video game industry and related changes in consumer behavior on the Companys sales; the Companys ability to keep pace with changing industry technology and consumer preferences; decrease in popularity of certain types of video games; the Companys ability to react to trends in pop culture with regard to its sales of collectibles and dependence on licensed products for a substantial portion of such sales; the competitive nature of the Companys industry, including competition from mass retailers, E-Commerce businesses, and traditional store-based retailers; the ability and willingness of the Companys vendors to provide marketing and merchandise support at historical or anticipated levels; the Companys ability to attract and retain executive officers, including a new chief financial officer, and other key personnel; the Companys ability to obtain favorable terms from its current and future suppliers and vendors, including those engaged as part of the Companys shift to E-Commerce sales; the international nature of the Companys business; foreign currency fluctuations; changes in the Companys global tax rate; the impact of international crises and trade restrictions and tariffs on the delivery of the Companys products; the Companys dependence on sales during the holiday selling season; fluctuations in the Companys results of operations from quarter to quarter; the Companys ability to de-densify its global store base; the Companys ability to renew, terminate or enter into new leases on favorable terms; the adequacy of the Companys management information systems; the Companys reliance on centralized facilities for refurbishment of its pre-owned products; the Companys ability to maintain security of its customer, employee or company information; potential harm to the Companys reputation, including from cybersecurity breaches; the Companys ability to maintain effective control over financial reporting; restrictions on the Companys ability to purchase and sell pre-owned video games; potential future litigation and other legal proceedings; changes in accounting rules and regulations; and the Companys ability to comply with federal, state, local and
international law. Additional factors that could cause results to differ materially from those reflected or described in the forward-looking statements can be found in GameStops Annual Report on Form 10-K for the fiscal year ended January 30, 2021 and other filings made from time to time with the SEC and available at the SECs Internet site at http://www.sec.gov or http://investor.GameStop.com. Forward-looking statements contained in this press release speak only as of the date of this press release. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.
GameStop Corp. Investor Relations