JPMorgan Chase & Co is poised to retain approximately 40% of the fees linked to the $20bn debt financing backing the take-private of Electronic Arts, according to a report by Bloomberg, equating to about $200m of the total fee.
The deal, in which JPMorgan originally committed to underwrite the full financing of the $55bn purchase, will see about $500m in total fees allocated among underwriters. Around 20 banks are now participating, each receiving a slice of the fee pool based on their relative portion of the loan.
The $500m fee for EA uses an average underwriting rate of around 2.5% on leveraged buyouts.
