Electronic Arts Announces Proposed Offering of Senior Notes

Rhea-AI Summary

Electronic Arts (NASDAQ: EA) plans to offer senior notes in a public offering, subject to market conditions. The net proceeds will be utilized for general corporate purposes, including potential acquisitions. J.P. Morgan Securities and BofA Securities will serve as joint book-running managers for this offering, which is associated with an effective shelf registration statement filed with the SEC. EA's fiscal year 2020 saw GAAP net revenue of $5.5 billion, highlighting its position in the digital interactive entertainment sector.

Positive

• Intended use of proceeds includes acquisitions, potentially enhancing growth.
• Strong revenue figures of $5.5 billion in fiscal year 2020 demonstrate financial stability.

Negative

• Risks related to market conditions and interest rate changes could impact the success of the offering.
• Uncertainty in execution of business and capital plans may hinder anticipated benefits.

Electronic Arts Inc. (NASDAQ: EA) today announced that it intends to offer, subject to market and other conditions, senior notes in a public offering.

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 and BofA Securities, Inc. will act 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.

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FAQ

What is Electronic Arts planning with the senior notes offering on NASDAQ: EA?

Electronic Arts intends to offer senior notes to raise capital for general corporate purposes, including acquisitions.

Who are the underwriters for EA's senior notes offering?

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

What were EA's revenue figures for the fiscal year 2020?

In fiscal year 2020, Electronic Arts reported GAAP net revenue of $5.5 billion.

Why is Electronic Arts issuing senior notes?

The company aims to use the net proceeds from the senior notes offering for general corporate purposes, notably acquisitions.

What risks are associated with EA's senior notes offering?

Potential risks include fluctuations in market conditions and interest rates that could affect the offering's success.