Electronic Arts’ proposed $55bn leveraged buyout has upended expectations for its 2031 and 2051 bonds.
Instead of pricing in a straightforward 101% change-of-control payout, investors are weighing a tender offer and potential defeasance strategy that could strip covenants and lower the takeout cost. With a potential downgrade looming, bondholders must decide whether they can resist the maneuver or accept a discounted exit.
Tune into our latest episode of Cloud 9fin, where senior legal analysts Chris Osborne and Anthony Park unpack this situation with senior credit analyst Steven Price.
Follow our reporting of the Electronic Arts takeover at 9fin.com.
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