By Paul A. Harris
Portland, Ore., Sept. 19 – GameStop Corp. priced an upsized $350 million issue of five-year senior notes (Ba1/BB+) at par to yield 5˝% on Friday, according to a syndicate source.
The deal was increased from $250 million.
The yield priced on top of yield talk, and in line with initial guidance in the mid-5% yield context.
BofA Merrill Lynch was the left bookrunner. J.P. Morgan Securities LLC was the joint bookrunner.
The Grapevine, Texas-based electronic game retailer plans to use the proceeds to pay down its asset-based credit facility and for general corporate purposes, which may include acquisitions, dividends and stock buybacks.
| Issuer: | GameStop Corp.
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| Amount: | $350 million, increased from $250 million
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| Maturity: | Oct. 1, 2019
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| Securities: | Senior notes
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| Left bookrunner: BofA Merrill Lynch
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| Joint bookrunners: | J.P. Morgan Securities LLC
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| Coupon: | 5˝%
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| Price: | Par
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| Yield: | 5˝%
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| Spread: | 368 bps
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| First call: | Oct. 1, 2016 at 104.125
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| Trade date: | Sept. 19
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| Settlement date: | Sept. 24
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| Ratings: | Moody’s: Ba1
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| Standard & Poor’s: BB+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 5˝% area
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| Marketing: | Roadshow
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