This is an interesting development.
Electronic Arts Inc. (NASDAQ:EA) today announced that it has agreed to sell $750 million in aggregate principal amount of its 1.850% Senior Notes due 2031 (the “2031 notes”) at a public offering price equal to 99.727% of the principal amount thereof and $750 million in aggregate principal amount of its 2.950% Senior Notes due 2051 (the “2051 notes” and, together with the 2031 notes, the “senior notes”) at a public offering price equal to 99.466% of the principal amount thereof. The offering is expected to close on February 11, 2021, subject to customary closing conditions.
The 2031 notes will mature on February 15, 2031 and bear interest at an annual rate of 1.850% and the 2051 notes will mature on February 15, 2051 and bear interest at an annual rate of 2.950%.
EA intends to use the net proceeds from the offering for general corporate purposes, including but not limited to acquisitions.
J.P. Morgan Securities LLC, BofA Securities, Inc., BNP Paribas Securities Corp. and Citigroup Global Markets Inc. are acting as joint book-running managers for the offering.
The offering of senior notes is being made pursuant to an effective shelf registration statement on Form S‑3 that has previously been filed with the Securities and Exchange Commission (“SEC”). A preliminary prospectus supplement, together with the accompanying prospectus, related to the offering has been filed with the SEC and is available on the SEC’s website, https://www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus related to the offering may be obtained by contacting: J.P. Morgan Securities LLC at (212) 834-4533 or BofA Securities, Inc. toll free at (800) 294-1322
