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Banks Initiate Loan Sale for Electronic Arts Buyout

  • 13 hours ago
  • 1 min read

A JPMorgan-led group of banks has begun marketing a USD 5.75 billion loan to investors. This loan is intended to help finance the leveraged buyout of Electronic Arts, a video game publisher.


Glass skyscraper with J.P. Morgan logo against a blue sky, reflecting sunlight. Modern architecture, angled view.
Credit: J.P MORGAN

The seven-year term loan B comprises a USD 4 billion portion and a EUR 1.531 billion, or USD 1.75 billion equivalent, portion. This funding is part of EA’s USD 55 billion take-private deal.


A consortium of investors, including Saudi Arabia’s Public Investment Fund, Silver Lake, and Affinity Partners, is facilitating the acquisition. Additionally, a USD 3.25 billion term loan A is involved in the overall financing structure.


The deal also includes USD 9 billion in other secured and unsecured debt, denominated in both dollars and euros. The take-private deal is anticipated to close in June, according to the firms' September announcement.


Banks are marketing the USD 4 billion and EUR 1.531 billion portions of the term loan B at a discounted 98.5 cents on the dollar.


These portions carry a floating interest rate of 350 to 375 basis points over the Secured Overnight Financing Rate (SOFR) for the USD portion. For the EUR portion, the floating interest rate is 350 to 375 basis points over the Euro Interbank Offered Rate (Euribor).


The loan sale's deadline is currently set for market close on March 23, according to the term sheet.

  • A JPMorgan-led group of banks launched the marketing of a USD 5.75 billion loan.

  • The loan helps finance the USD 55 billion leveraged buyout of Electronic Arts.

  • The seven-year term loan B includes USD 4 billion and EUR 1.531 billion (USD 1.75 billion equivalent) portions.


Source: REUTERS

 
 
 

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