GameStop Corp. (NYSE: GME), the world’s largest video game and entertainment software retailer, announced today that its Board of Directors has authorized the redemption of all $120 million of the outstanding bonds remaining under its and GameStop, Inc.’s Senior Floating Rate Notes due 2011. The Notes are redeemable by the Issuers beginning on October 1, 2007.
The Company expects to incur a one-time pre-tax charge of approximately $3.8 million in the third quarter of 2007 associated with the redemption, which represents the $2.4 million premium paid to bondholders to redeem the remaining bonds and $1.4 million of deferred financing costs.
The terms and conditions of the Notes permit the Issuers to unconditionally redeem all of the Notes at a redemption price of 102% plus accrued and unpaid interest up to and including the date fixed for redemption. The expected date for redemption by the Issuers is October 1, 2007.
Formal notice of the redemption will be made to bondholders in accordance with the terms of the Notes, with such notice to be mailed at least 30 days but no more than 60 days before the redemption date.
About GameStop Corp.
Headquartered in Grapevine, TX, GameStop Corp. is the world’s largest video game and entertainment software retailer. The company operates over 4,800 retail stores across the United States and in sixteen countries worldwide. The company also operates two e-commerce sites, GameStop.com and EBgames.com, and publishes Game Informer® magazine, a leading multi-platform video game publication. GameStop Corp. sells new and used video game software, hardware and accessories for next generation video game systems from Sony, Nintendo, and Microsoft. In addition, the company sells PC entertainment software, related accessories and other merchandise.
General information on GameStop Corp. can be obtained at the company’s corporate website at http://www.gamestop.com/corporate.
Safe Harbor
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, the outlook for fiscal 2007 and beyond, future financial and operating results, projected store openings, the company's plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of GameStop's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Factors that could cause GameStop’s results to differ materially from those described in the forward-looking statements can be found in GameStop’s Annual Report on Form 10-K for the fiscal year ended February 3, 2007 filed with the SEC and available at the SEC's Internet site at http://www.sec.gov.
