Banks launch sale of EA buyout's $5.75 billion cross-border loan

Core Viewpoint - A JPMorgan-led group of banks has initiated the marketing of a $5.75 billion loan to finance the leveraged buyout of Electronic Arts (EA) by a consortium of investors, including Saudi Arabia's Public Investment Fund, Silver Lake, and Affinity Partners [1][2]. Group 1: Loan Structure - The seven-year term loan B consists of a $4 billion U.S. dollar portion and a €1.531 billion (approximately $1.75 billion) portion [2]. - Additionally, there is a $3.25 billion term loan A and $9 billion in other secured and unsecured debt denominated in both dollars and euros [3]. Group 2: Loan Marketing Details - The banks are marketing the $4 billion and €1.531 billion portions of term loan B at a discounted price of 98.5 cents on the dollar, with a floating interest rate of 350 to 375 basis points over the Secured Overnight Financing Rate (SOFR) and the Euro Interbank Offered Rate (Euribor) [4]. - The deadline for the loan sale is set for market close on March 23 [4]. Group 3: Transaction Timeline - The take-private deal for Electronic Arts is expected to close in June, following the announcement made in September [3].