EA plans to boost thousands and thousands (probably billions) in a brand new senior word providing to assist pay for brand spanking new studio acquisitions, growth, and different enterprise prices.
EA right this moment introduced that it’ll promote a certain quantity of senior notes for an undisclosed value in a brand new share providing. Senior notes are money owed that mature after a set interval and have greater precedence over present money owed. Shareholders that purchase senior notes have a assure of a return with a set rate of interest. Normally, EA would pay these senior notes off after a 5-6 12 months interval.
Working example: EA held a senior note offering in 2016 for $1 billion cut up between two maturity dates: $600 million can be due in 2021, and the rest, $400 million, is due in 2026.
EA says it can use the funds for nearly every part:
“EA intends to make use of the online proceeds from the providing for normal company functions, together with however not restricted to acquisitions.
“We intend to make use of the online proceeds from the sale of the securities to which this prospectus relates for normal company functions. Basic company functions might embody funding for working capital, financing capital expenditures, analysis and growth, advertising and distribution efforts and, if alternatives come up, for acquisitions or strategic alliances. Pending such makes use of we might make investments the online proceeds in curiosity bearing securities.
EA filed a preliminary prospectus with the SEC, however no precise data was revealed. We do not know what number of shares EA is promoting, nor do we all know precise rates of interest, maturity durations, or value per share.