Summary
On February 24, 2016, Electronic Arts Inc. (EA) announced the issuance and sale of a significant debt offering, raising a total of $1 billion through senior notes. This offering comprises $600 million in 3.700% Senior Notes due 2021 and $400 million in 4.800% Senior Notes due 2026. The notes are general unsecured senior obligations, ranking equally with EA's other senior unsecured debt. This debt issuance represents a strategic move to strengthen EA's capital structure and potentially fund future growth initiatives or general corporate purposes. Investors should note the specific interest rates and maturity dates, as well as the covenants and events of default outlined in the indenture, which govern the terms of these notes. The offering was conducted through a registered offering under EA's existing Form S-3 registration statement.
Key Highlights
- 1EA issued $1 billion in senior notes through a registered offering.
- 2The offering consists of $600 million of 3.700% Senior Notes due 2021.
- 3The offering also includes $400 million of 4.800% Senior Notes due 2026.
- 4The senior notes are unsecured and rank equally with other senior unsecured obligations.
- 5Interest is payable semi-annually on March 1 and September 1, starting September 1, 2016.
- 6The indenture includes provisions for redemption at EA's option, including a 'make-whole' provision before par call dates.
- 7A 'Change of Control Repurchase Event' allows noteholders to require EA to repurchase notes at 101% of principal plus accrued interest.