Houlihan Lokey Shares Jump 3.31% After Fitch Withdraws EA Bond Rating Over $55B Buyout
HLI•HLI shares rose 3.31% as Fitch withdrew its rating on EA’s bonds, citing a $55 billion buyout dispute. Loss of a credit rating could complicate Electronic Arts’ debt issuance and increase borrowing costs if the acquisition impasse persists.
1. Fitch Withdraws Electronic Arts Bond Rating
Fitch removed its credit rating from all outstanding EA bonds, stating that unresolved disagreements over the proposed $55 billion acquisition leave the deal’s financing structure in doubt. Without a formal rating, prospective bond buyers and existing holders face greater uncertainty regarding EA’s creditworthiness.
2. Market Reaction and Implications
HLI shares climbed 3.31% on expectations that advisory and underwriting firms could see increased activity amid bond reissuance or refinancing. For Electronic Arts, the lack of a rating may force higher yields on future debt offerings or delays in raising new financing until the buyout dispute is settled.
