Published on 2/9/2021 in the Prospect News Investment Grade Daily.
New Issue: Electronic Arts sells $1.5 billion of notes in 10-, 30-year tranches
By Wendy Van Sickle
Columbus, Ohio, Feb. 9 – Electronic Arts Inc. sold a $1.5 billion two-tranche offering of senior notes (Baa1/BBB+) on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The sale included $750 million of 1.85% 10-year notes sold with a 72 basis points spread over Treasuries. The issue priced at 99.727 to yield 1.88%.
There was also $750 million of 2.95% 30-year bonds priced at 99.466 to yield 2.977%, or Treasuries plus 102 bps.
Bookrunners are J.P. Morgan Securities LLC, BofA Securities, Inc., BNP Paribas Securities Corp. and Citigroup Global Markets Inc.
Proceeds will be used for general corporate purposes.
Electronic Arts is a Redwood City, Calif.-based video game maker.
| Issuer: | Electronic Arts Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.5 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities, Inc., BNP Paribas Securities Corp. and Citigroup Global Markets Inc.
|
| Co-managers: | Mizuho Securities USA LLC, MUFG, Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc., Wells Fargo Securities, LLC and Siebert Williams Shank & Co., LLC
|
| Trade date: | Feb. 9
|
| Settlement date: | Feb. 11
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Feb. 15, 2031
|
| Coupon: | 1.85%
|
| Price: | 99.727
|
| Yield: | 1.88%
|
| Spread: | Treasuries plus 72 bps
|
| Make-whole call: | Treasuries plus 12.5 bps prior to Nov. 15, 2030, then callable at par
|
|
|
| 30-year notes
|
| Amount: | $750 million
|
| Maturity: | Feb. 15, 2051
|
| Coupon: | 2.95%
|
| Price: | 99.466
|
| Yield: | 2.977%
|
| Spread: | Treasuries plus 102 bps
|
| Make-whole call: | Treasuries plus 15 bps prior to Aug. 15, 2050, then callable at par
|
|
|
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