JPMorgan-Led Banks Draw $19B Demand on $5.75B Electronic Arts LBO Loan, Next Qualtrics Debt
JPMorgan-led banks launched a $5.75 billion cross-border loan sale to finance Electronic Arts’ $55 billion leveraged buyout, targeting a March 23 closing and drawing over $19 billion in investor bids. They will next price a $5.3 billion debt package for Qualtrics’ $6.75 billion Press Ganey Forsta acquisition.
1. $5.75B Loan Sale for Electronic Arts LBO
Banks led by JPMorgan launched a $5.75 billion cross-border loan sale to underwrite the record $55 billion take-private of Electronic Arts by Saudi Arabia’s Public Investment Fund, Silver Lake and Affinity Partners. The package includes a seven-year term loan B, a $3.25 billion term loan A and $9 billion in additional secured and unsecured debt, with pricing aimed to conclude by March 23.
2. Investor Demand Exceeds $19 Billion
Since the Monday launch, the EA debt offering has attracted over $19 billion in bids from institutional investors, signaling robust appetite for high-grade leveraged finance in a volatile market. This level of demand provides confidence for pricing before bankers shift focus to the next financing.
3. Upcoming Qualtrics Debt Offering
Following the EA loan close, the same banking group will begin price discovery on a $5.3 billion debt package to fund Qualtrics’ $6.75 billion acquisition of Press Ganey Forsta. That package comprises a $3.3 billion leveraged loan and $2 billion in high-yield bonds, with closing expected in early April subject to market conditions.