(Reuters) - GameStop Corp (NYSE:GME) 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 (NYSE:WFC) 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 (NASDAQ:AMZN) in a push to pivot the company away from brick-and-mortar towards e-commerce.