GameStop to Buy Back More Than 60% of Its 2021 Bonds Early
The shares of GameStop (NYSE: GME) jumped approximately 4% yesterday after the company issued a press release saying it's buying back roughly 63% of its outstanding 2021 senior notes early. GameStop will voluntarily redeem the bonds, which are 6.75% senior notes, on Dec. 11 of this year, paying the principal amount plus interest up to that date.
The buyback, which amounts to $125 million in principal, is being carried out because GameStop has "remained steadfast in our focus on creating a more efficient business model," CFO Jim Bell said in a company statement. He added the company is using its increased cash "to reduce our outstanding debt" and said this event "is reflective of our success in transforming our business model."
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Source Fool.com
