8-KMaterial AgreementsExhibits & Filings

ELECTRONIC ARTS INC. 8-K Report, Material Agreement (Feb 10, 2021)

Filed February 10, 2021For Securities:EA

Summary

Electronic Arts Inc. (EA) announced on February 10, 2021, that it has entered into a material definitive agreement to issue and sell $1.5 billion in aggregate principal amount of senior notes. This includes $750 million of 1.850% Senior Notes due 2031 and $750 million of 2.950% Senior Notes due 2051. The offering is being conducted under an effective registration statement on Form S-3. This debt issuance suggests EA is seeking to raise capital for general corporate purposes, potentially including strategic investments, acquisitions, or refinancing existing debt. The long-term nature of these notes indicates a strategy to secure financing for extended periods at favorable interest rates, which could support future growth initiatives and enhance financial flexibility.

Key Highlights

  • 1EA is issuing $1.5 billion in aggregate principal amount of senior notes.
  • 2The offering consists of $750 million of 1.850% Senior Notes due 2031.
  • 3The offering also includes $750 million of 2.950% Senior Notes due 2051.
  • 4The senior notes were issued pursuant to an underwriting agreement with J.P. Morgan Securities LLC and BofA Securities, Inc.
  • 5The issuance is registered under an effective Form S-3 registration statement filed with the SEC.
  • 6The net proceeds from the offering are intended for general corporate purposes.

Frequently Asked Questions

EA has stated that the net proceeds from the offering of these senior notes are intended for general corporate purposes. This can encompass a variety of uses, such as funding strategic initiatives, potential acquisitions, ongoing operations, or refinancing existing debt obligations.

EA is issuing two tranches of senior notes: $750 million of 1.850% Senior Notes due 2031 and $750 million of 2.950% Senior Notes due 2051. The total aggregate principal amount is $1.5 billion.

The use of an effective Form S-3 registration statement indicates that EA is a "well-known seasoned issuer" (WKSI). This allows the company to file a simplified registration statement and efficiently offer securities to the public, suggesting a degree of financial maturity and established reporting history.

The underwriters for this senior notes offering are J.P. Morgan Securities LLC and BofA Securities, Inc., acting as representatives of the other underwriters named in the agreement.