"Earlier this week, Bloomberg reported that S&P Global Ratings plans to lower EA's credit rating to "junk status" once the leveraged buyout deal is completed sometime next year. It's currently "BBB+" but would fall into the "non-investment grade" or "speculative" territory once saddled with the $20 billion loan required to pay off all of the Battlefield 6 publisher's existing shareholders at a 25-percent premium. Moody's Ratings announced it is planning a similar reappraisal."
""JPMorgan made the commitment through its leveraged-finance arm, not its private credit strategy, and the biggest U.S. bank is expected to share the risk with rival firms to create a global syndicate of underwriters, according to people familiar with the deal," Bloomberg reported yesterday. "The debt- expected to be rated in the single-B range-is set to be sold through high-yield bonds and leveraged loans in a cross-border, dual-currency transaction, said the people, who asked not to be identified discussing confidential details.""
A planned $55 billion sale of EA to Saudi Arabia and private equity would convert the company to a heavily leveraged private entity. Employees fear cuts, layoffs, and censorship as debt burdens mount and executives remain publicly silent. Ratings agencies plan to downgrade EA to non-investment grade once a roughly $20 billion loan is added to pay shareholders at a 25% premium. Financing appears set to include single-B–rated high-yield bonds and leveraged loans arranged by a global syndicate led through JPMorgan's leveraged-finance arm. The debt profile could significantly reshape EA's operations and strategy.
Read at Kotaku
Unable to calculate read time
Collection
[
|
...
]