By Paul Deckelman
New York, March 4 - GameStop Corp. priced a $475 million issue of senior notes due March 15, 2021 (Ba1/BB+) at par to yield 6¾%, high yield syndicate sources said Friday.
The issue was upsized by $75 million from the $400 million that was announced on Wednesday.
It priced after a short marketing campaign.
The Rule 144A/Regulation S offering was brought to market via sole bookrunner Bank of America Merrill Lynch.
The notes will be non-callable for the first two years after issue, other than via a make whole call at 50 basis points over Treasuries.
GameStop, a Grapevine, Texas-based video game, consumer electronics, and wireless services retailer, anticipates that the note sale will generate net proceeds after expenses of some $466 million.
It plans to use the proceeds for general corporate purposes, which will likely include acquisitions and, potentially, dividends and stock buybacks.
GameStop last visited the junk bond market in 2014, when it sold $350 million of 5½% senior notes due Oct. 1, 2019. That Rule 144A/Regulation S for life offering priced at par on Sept. 19, 2014 as a regularly scheduled forward calendar offering via left bookrunner BofA Merrill Lynch and joint bookrunner J.P. Morgan, after having been upsized from an originally announced $250 million. The proceeds were used to pay down the company’s asset-based credit facility and for general corporate purposes.
| Issuer: | GameStop Corp.
|
| Amount: | $475 million, upsized from $400 million
|
| Maturity: | March 15, 2021
|
| Securities: | Senior notes
|
| Bookrunner: | Bank of America Merrill Lynch
|
| Co-managers: | First Third Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Regions Financial Corp., U.S. Bancorp, Wells Fargo Securities LLC
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Call: | Non-callable until March 15, 2018, other than via a make-whole call at Treasuries plus 50 bps
|
| Trade date: | March 4
|
| Settlement: | March 9 (T+3)
|
| Ratings: | Moody’s: Ba1
|
| S&P: BB+
|
| Distribution: | Rule 144A/Regulation S
|
| Marketing: | Short roadshow
|
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