GameStop gets new $500 million asset-based credit facility

(Reuters) – GameStop Corp said on Thursday it entered into an agreement with a syndicate of banks for a new $500 million global asset-based credit facility to improve its liquidity, as the videogame retailer invests aggressively in its strategy to pivot toward e-commerce.

The five-year credit agreement replaces GameStop’s existing one of $420 million, which was due in November 2022, the company said, adding that the facility would reduce borrowing costs and allow more flexibility.

Wells Fargo Bank served as the lead arranger of the facility and will serve as the administrative agent.

GameStop, which raised $551 million in late April, raised more than $1 billion in a share offering in June, cashing in on a social-media driven surge in its stock price in the beginning of 2021.

The company is undergoing a revamp as Chairman Ryan Cohen has hired executives from companies including Amazon.com Inc in a push to pivot the company away from brick-and-mortar towards e-commerce.

(Reporting by Chavi Mehta in Bengaluru; Editing by Maju Samuel)