Investor Presentaiton
Management Faces a Challenging Refinancing
In March 2016, GameStop issued $475 million of 6.75% Senior Notes to fund an ill-advised M&A strategy
The Notes are due in March 2021 and currently have an outstanding balance of approximately $420 million
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In late 2019 and early 2020, when credit market conditions were much more favorable than they are now, we urged the Company to
refinance the Senior Notes that were due in slightly over a year
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However, GameStop's management team was overly optimistic in the Company's financial forecast and did not act
Fast forward, the COVID-19 pandemic has drastically changed the credit markets and GME's financial projections
A sophisticated Chief Financial Officer and executive team, would not have waited!
The Company's refinancing becomes more challenging every day that passes, as GME loses negotiating leverage over new capital
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GameStop
Source: Stockholder Group Analysis.
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