Electronic Arts gets $500 million revolver at Libor plus 112.5 bps

By Angela McDaniels

Tacoma, Wash., Aug. 29 – Electronic Arts Inc. entered into a $500 million revolving credit facility due Aug. 29, 2024 on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

The initial interest rate is Libor plus 112.5 basis points, and the initial commitment fee is 11 bps. The margin over Libor ranges from 87.5 bps to 137.5 bps, and the commitment fee ranges from 7 bps to 20 bps, depending on the company’s ratings.

The revolver has two one-year extension options and a $500 million accordion feature.

JPMorgan Chase Bank, NA, BofA Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Goldman Sachs Bank USA acted as joint bookrunners and joint lead arrangers for the revolver. JPMorgan is the administrative agent.

Proceeds may be used for general corporate purposes.

No loans were made under the credit agreement on the closing date.

Under the credit agreement, the company is required to maintain compliance with a debt-to-EBITDA ratio.

The revolver replaces the company's $500 million revolver that was due to expire on March 19, 2020. No amounts were drawn under the prior revolver, which has been terminated.

Electronic Arts is a Redwood City, Calif.-based video game maker.

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