Electronic Arts Announces Pricing of Offering of Senior Notes

Rhea-AI Summary

Electronic Arts (NASDAQ: EA) announced a $750 million offering of 1.850% Senior Notes due 2031 and 2.950% Senior Notes due 2051, priced at 99.727% and 99.466% of the principal amount, respectively. The offering is set to close on February 11, 2021, pending customary conditions. EA plans to use the proceeds for general corporate purposes, including acquisitions. J.P. Morgan Securities, BofA Securities, BNP Paribas, and Citigroup are managing the offering. The notes are part of an effective shelf registration statement filed with the SEC, with details available on their website.

Positive

• Offering of $750 million provides significant capital for acquisitions and corporate purposes.
• Interest rates of 1.850% and 2.950% are favorable, potentially attracting interest from investors.

Negative

• Potential dilution of shares due to the offering of senior notes.
• Market risks could impact the effectiveness of the company's capital plans.

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, http://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.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About Electronic Arts

Electronic Arts (NASDAQ: EA) is a global leader in digital interactive entertainment. The Company develops and delivers games, content and online services for Internet-connected consoles, mobile devices and personal computers.

In fiscal year 2020, EA posted GAAP net revenue of $5.5 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality brands such as EA SPORTS™ FIFA, Battlefield™, Apex Legends™, The Sims™, Madden NFL, Need for Speed™, Titanfall™ and Plants vs. Zombies™. More information about EA is available at www.ea.com/news.

Safe Harbor for Forward-Looking Statements

Some statements set forth in this press release regarding Electronic Arts’ offering of senior notes contain forward-looking statements that are subject to change. Statements including words such as “anticipate,” “believe,” “expect,” “intend,” “estimate,” “plan,” “predict,” “seek,” “goal,” “will,” “may,” “likely,” “should,” “could” (and the negative of any of these terms), “future” and similar expressions also identify forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual events or actual future results to differ materially from those set forth in the forward-looking statements, including the following: Electronic Arts’ ability to effectively execute its business and capital plans, changes in general economic and market conditions, including the stock market, changes in interest rates, including interest rate resets and other factors described in Electronic Arts’ SEC filings (including the preliminary prospectus supplement and accompanying prospectus filed in relation to the offering of senior notes, Electronic Arts’ latest Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2020 and Electronic Arts’ Annual Report on Form 10-K for the fiscal year ended March 31, 2020). If any of these risks or uncertainties materializes, the potential benefits of the offering of senior notes may not be realized, Electronic Arts’ operating results and financial performance could suffer, and actual results could differ materially from the expectations described in these forward-looking statements. There is no assurance that the offering of the senior notes will be completed or completed as described above. These forward-looking statements speak only as of the date of this press release. Electronic Arts assumes no obligation to update these forward-looking statements.

Category: Company News

View source version on businesswire.com: https://www.businesswire.com/news/home/20210209006260/en/

FAQ

What are the details of Electronic Arts' senior notes offering?

Electronic Arts is offering $750 million in 1.850% Senior Notes due 2031 and $750 million in 2.950% Senior Notes due 2051.

When will the Electronic Arts senior notes offering close?

The offering is expected to close on February 11, 2021, subject to customary conditions.

How will Electronic Arts use the proceeds from the senior notes offering?

EA intends to use the net proceeds for general corporate purposes, including acquisitions.

Who are the managers for the Electronic Arts senior notes offering?

J.P. Morgan Securities, BofA Securities, BNP Paribas, and Citigroup are acting as joint book-running managers for the offering.

What risks are associated with Electronic Arts' offering of senior notes?

Risks include potential dilution of shares and market conditions that may affect the execution of business plans.