is shifting more of the
for the
of E
toward
, according to people with knowledge of the matter.
The roughly US$15.5 billion debt offering is expected to include about US$9.5 billion of junk bonds and $6 billion of leveraged loans, said the people, who asked not to be identified because they’re not authorized to speak publicly. Initially the debt mix was skewed more toward loans.
Pre-marketing is due to get underway as soon as Monday, with the formal launch slated for the following week, around March 16, the people said.
Early pricing discussions on the secured high-yield notes are seven per cent to 7.25 per cent, and around 8.5 per cent for the unsecured bonds, the people said.
The loan is being pitched at about 3.50 per cent to 3.75 per cent percentage points over the benchmark rate and a discounted price of 98.5 to 99 cents on the dollar, the people said, adding that details and timing could still change.
The financing will include a mix of United States dollar and euro-denominated debt, the latter of which will offer a premium of about one percentage point more, the people said.
A representative for JPMorgan declined to comment.
The blockbuster buyout of EA — known for popular games such as Battlefield and EA Sports FC — by private equity firm
, Saudi Arabia’s
and
was seen as a turning point for reviving large private equity deals that have dried up in recent years because of higher interest rates.
Representatives for EA and for the consortium of buyers didn’t respond to requests for comment.
Since its announcement, leveraged finance markets have become more volatile. Loan prices in particular have come under pressure amid concerns that artificial intelligence could disrupt some businesses.
Earlier discussions for the EA debt package comprised an US$8 billion term loan B, US$7.5 billion of bonds and a US$2 billion liquidity facility, Bloomberg previously reported.
Bank of America Corp., Citigroup Inc., Morgan Stanley and Barclays PLC are among about 20 banks that have joined the financing, giving them a slice of what will be massive fees.
—With assistance from Aaron Weinman.