Banks Launch $5.75 Billion Loan Sale for EA Buyout, Priced at Discount
Summary
A JPMorgan-led group of banks has launched the sale of a $5.75 billion cross-border term loan B, a significant component of the debt financing for the leveraged buyout of Electronic Arts. This loan, comprising a $4 billion U.S. dollar portion and a 1.531 billion euro equivalent, is being marketed at a discounted price of 98.5 cents on the dollar with interest rates set at 350-375 basis points over SOFR/Euribor. This development follows earlier reports in March that banks were planning a substantial debt sale for the EA buyout, which was detailed in the company's Q3 FY26 10-Q as a definitive merger agreement at $210 per share. The successful syndication of this and other debt tranches is a critical step towards the completion of the $55 billion take-private deal, expected to close in June. Traders should monitor the progress of this financing as it directly impacts the certainty and timeline of the acquisition.
At the time of this announcement, EA was trading at $199.67 on NASDAQ in the Technology sector, with a market capitalization of approximately $50B. The 52-week trading range was $131.15 to $204.89. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Reuters.