Take-Two Interactive Software, Inc. Announces Pricing of $600 Million Senior Notes Offering
Take-Two Interactive Software (NASDAQ: TTWO) has announced a $600 million Senior Notes offering. This includes $300 million of 5.400% Senior Notes due 2029 and $300 million of 5.600% Senior Notes due 2034. The proceeds will be used for general corporate purposes, including repaying $600 million of 3.550% Senior Notes due 2025. The offering is expected to close on June 12, 2024, subject to customary conditions. J.P. Morgan Securities and Wells Fargo Securities, are managing the offering. Detailed documents are available on the SEC's website.
- Successful issuance of $600 million Senior Notes.
- Interest rates set at 5.400% for 2029 notes and 5.600% for 2034 notes.
- Proceeds to be used for general corporate purposes, including debt repayment.
- Offering managed by reputable firms J.P. Morgan Securities and Wells Fargo Securities,
- Increased interest expense from 3.550% on 2025 notes to 5.400% and 5.600% on new notes.
- Potential risk if customary closing conditions are not met by June 12, 2024.
Insights
Take-Two Interactive's recent announcement regarding their
While the interest rates are notably higher, this is balanced by the long-term maturity of these notes—2029 and 2034 respectively. This could imply that Take-Two is aiming for a stable long-term financial structure. For retail investors, the key takeaway should be that the company is focused on managing its debt maturity profile and ensuring liquidity. However, the higher interest rates mean increased interest expense over the long term, which could impact net income.
From a financial standpoint, it’s also worth noting the involvement of J.P. Morgan Securities LLC and Wells Fargo Securities, LLC as joint book-running managers, which adds credibility and suggests confidence in the successful issuance of these notes.
From a market perspective, Take-Two Interactive's decision to issue new Senior Notes worth
This move could also signal the company's expectations for market conditions. Higher interest rates on the new notes compared to the old ones suggest that Take-Two is locking in terms now, perhaps anticipating even higher rates in the future. For industry observers, this could be an indicator of cautious optimism, where the company is balancing growth opportunities with financial prudence.
Retail investors should observe how this debt restructuring aligns with Take-Two's strategic goals, especially regarding upcoming game releases and potential market expansion. The company's ability to manage its debt efficiently while continuing to grow its portfolio will be critical in maintaining investor confidence.
The Company intends to use the net proceeds from the offering for general corporate purposes, including the repayment of the
The closing of the offering is expected to occur on June 12, 2024, subject to satisfaction of customary closing conditions.
J.P. Morgan Securities LLC and Wells Fargo Securities, LLC are acting as joint book-running managers for the offering. The offering is being made only by means of a prospectus supplement and the accompanying prospectus, which is filed as part of an effective shelf registration statement filed by the Company with the Securities and Exchange Commission (“SEC”) on April 6, 2022. You may obtain copies of these documents without charge from the SEC’s website at www.sec.gov. Alternatively, you may request these documents by contacting J.P. Morgan Securities LLC at 383 Madison Avenue,
This announcement does not constitute an offer to sell or the solicitation of an offer to buy the Senior Notes or any other securities, nor will there be any sale of Senior Notes or any other securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Take-Two Interactive Software
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Cautionary Note Regarding Forward-Looking Statements
Statements contained herein that are not historical facts are considered forward-looking statements under federal securities laws and may be identified by words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “potential,” “predicts,” “projects,” “seeks,” “should,” “will,” or words of similar meaning and include, but are not limited to, statements regarding the outlook for our future business and financial performance. Such forward-looking statements are based on the current beliefs of our management as well as assumptions made by and information currently available to them, which are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Actual outcomes and results may vary materially from these forward-looking statements based on a variety of risks and uncertainties including risks relating to conducting business internationally, including as a result of unforeseen geopolitical events; the impact of changes in interest rates by the Federal Reserve and other central banks, including on our short-term investment portfolio; the impact of inflation; volatility in foreign currency exchange rates; our dependence on key management and product development personnel; our dependence on our NBA 2K and Grand Theft Auto products and our ability to develop other hit titles; our ability to leverage opportunities on PlayStation®5 and Xbox Series X|S; factors affecting our mobile business, such as player acquisition costs; the timely release and significant market acceptance of our games; the ability to maintain acceptable pricing levels on our games.
Other important factors and information are contained in the Company’s most recent Annual Report on Form 10-K, including the risks summarized in the section entitled “Risk Factors,” and the Company’s other periodic filings with the SEC, which can be accessed at www.take2games.com. All forward-looking statements are qualified by these cautionary statements and apply only as of the date they are made. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
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(Investor Relations)
Nicole Shevins
Senior Vice President
Investor Relations & Corporate Communications
Take-Two Interactive Software, Inc.
(646) 536-3005
nicole.shevins@take2games.com
(Corporate Press)
Alan Lewis
Vice President
Corporate Communications & Public Affairs
Take-Two Interactive Software, Inc.
(646) 536-2983
Alan.Lewis@take2games.com
Source: Take-Two Interactive
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