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Activision delays sale of $2.25 billion two-part notes until Thursday
By Paul A. Harris
Portland, Ore., Sept. 11 - Activision Blizzard, Inc. moved back the pricing of its downsized and restructured $2.25 billion bond offering until Thursday morning, according to a market source.
The deal had previously been expected to price on Wednesday.
Books are closed.
There have also been covenant changes.
Earlier on Wednesday both remaining tranches were launched inside of earlier price talk.
An upsized $1.5 billion tranche of eight-year notes, which comes with three years of call protection, launched at 5 5/8%; price talk was 5¾% to 6%. The eight-year notes tranche was upsized from $1 billion.
An upsized $750 million tranche of 10-year notes, which comes with five years of call protection, launched at 6 1/8%; price talk was 6¼% to 6½%. The 10-year notes tranche was upsized from $500 million.
The restructured two-part bond deal (Ba2/BB+) was earlier downsized to $2.25 billion from $2.5 billion, with $250 million of the proceeds shifted to the company's term loan.
Now an all high-yield trade, a $1 billion tranche of investment-grade rated senior secured notes was withdrawn.
J.P. Morgan Securities LLC and BofA Merrill Lynch are the joint bookrunners for the Rule 144A and Regulation S for life deal.
Goldman Sachs & Co., Mitsubishi UFJ Securities International plc, HSBC Securities (USA) Inc., Mizuho Securities USA Inc., RBC Capital Markets, SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc. are the co-managers.
Proceeds, along with cash on hand and senior credit facility borrowings, will be used to finance the purchase of Activision shares from Vivendi.
Activision Blizzard is a Santa Monica, Calif.-based interactive entertainment publishing company.
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