JPMorgan Prices Electronic Arts Buyout Loans at 98.5–99¢ in $30B Debt Package
JPMorgan is marketing Electronic Arts’s leveraged buyout debt by offering loans at 98.5–99 cents on the dollar, with prices subject to further cuts if demand weakens. The deal joins more than $30 billion of merger-driven junk bond and loan offerings reflecting higher oil costs and AI-related software valuation pressure.
1. Deal Structure
JPMorgan is arranging a debt sale to fund Electronic Arts’s leveraged buyout, offering loan tranches at 98.5–99 cents on the dollar. Underwriters retain flexibility to lower pricing further if investor demand falls short of targets.
2. Market Context
The EA financing is part of over $30 billion in merger-driven junk bond and leveraged loan issuances. Rising oil prices and concerns over AI-driven software valuations have tempered appetite for high-yield debt.
3. Investor Engagement
Before launch, JPMorgan assembled major leveraged finance firms in Miami Beach for face time with EA CEO Andrew Wilson to assess demand. Market participants see potential value in discounts but remain cautious on credit risk.