U.S. specialty video game retailer GameStop has announced that it is selling $300 million in Senior Floating Rate Notes and $650 million in Senior Notes in the company to investors, effectively a long-term loan until 2011-2012, in order to help fund its
recently regulator-approved merger with fellow retailer Electronics Boutique.
A press release put out by GameStop explains: "The net proceeds of the offering will be used to pay the cash portion of the merger consideration to be paid to the stockholders of Electronics Boutique Holdings Corp. in connection with the pending business combination with Electronics Boutique, which transaction is subject to stockholder approval."
If completed, the merger between GameStop and EB would create a single company representing 20 to 30 percent of the overall market for video game products in the United States - according to reports, this would include a combined total of 3,800 stories, with 3,200 of them in the U.S., and nearly $4 billion in yearly revenue.
