Investors have snapped up more than $18bn of debt tied to Electronic Arts’ $55bn privatisation, underscoring strong demand for leveraged financing even amid geopolitical uncertainty and AI-driven market disruption, according to a report by the Financial Times.
The financing package supports the largest-ever leveraged buyout of the video game publisher, led by a Saudi-backed consortium including Silver Lake and Affinity Partners, with Jared Kushner involved in assembling the group. The debt offering combines high-yield bonds, leveraged loans, and a term loan, complementing $36bn in equity from the consortium.
The final tranche, exceeding $6.6bn in US dollar and euro bonds, attracted an order book of more than $45bn. Banks, led by JPMorgan, adjusted allocations in response, selling fewer bonds and more syndicated loans to allow EA flexibility in early repayment. Leveraged loans priced at roughly 3.5 percentage points above benchmarks, while high-yield bonds yielded between 6.25% and 8.75%, depending on currency and seniority.
Industry participants noted that EA’s strong cash flow, recurring revenue streams, and exclusive sports licenses made the company a particularly attractive borrower despite the broader risk environment. The success of the deal is being viewed as a potential catalyst for reinvigorating the sub-investment grade debt market, including deals previously stalled by market caution, such as the proposed financing for Qualtrics.
