Published on 5/23/2017 in the Prospect News Investment Grade Daily.
New Issue: Activision Blizzard prices $1.2 billion of senior notes due 2022, 2027, 2047
By Cristal Cody
Tupelo, Miss., May 23 – Activision Blizzard, Inc. priced $1.2 billion of senior notes due 2022, 2027 and 2047 (Baa2/BBB) tighter than guidance on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $400 million of 2.6% five-year notes at 99.67 and a spread of Treasuries plus 85 basis points.
Activision priced $400 million of 3.4% 10-year notes at 99.367. The notes priced with a Treasuries plus 120 bps spread.
Activision sold $400 million of 4.5% 30-year notes at 98.554 and a Treasuries plus 165 bps spread.
BofA Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, Mizuho Securities USA Inc., MUFG and SunTrust Robinson Humphrey, Inc. were the bookrunners.
Proceeds will be used along with cash on hand to prepay $1.2 billion outstanding under the company’s term loan A facility due Aug. 23, 2021. As of March 31, the loan term carried interest at 2.23% per year.
Activision Blizzard is a Santa Monica, Calif.-based developer and distributor of video game content and services.
| Issuer: | Activision Blizzard, Inc.
|
| Amount: | $1.2 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, Mizuho Securities USA Inc., MUFG and SunTrust Robinson Humphrey, Inc.
|
| Co-managers: | BMO Capital Markets Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, U.S. Bancorp Investments Inc., Barclays, PNC Capital Markets LLC and Academy Securities, Inc.
|
| Change-of-control put: | 101%
|
| Trade date: | May 23
|
| Settlement date: | May 26
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | June 15, 2022
|
| Coupon: | 2.6%
|
| Price: | 99.67
|
| Spread: | Treasuries plus 85 bps
|
| Price guidance: | Treasuries plus 95 bps area, plus or minus 5 bps
|
| Call feature: | Make-whole call before May 15, 2022 at greater of par and Treasuries plus 15 bps; thereafter at par
|
|
|
| 10-year notes
|
| Amount: | $400 million
|
| Maturity: | June 15, 2027
|
| Coupon: | 3.4%
|
| Price: | 99.367
|
| Spread: | Treasuries plus 120 bps
|
| Price guidance: | Treasuries plus 130 bps area, plus or minus 5 bps
|
| Call feature: | Make-whole call before March 15, 2027 at greater of par and Treasuries plus 20 bps; thereafter at par
|
|
|
| 30-year notes
|
| Amount: | $400 million
|
| Maturity: | June 15, 2047
|
| Coupon: | 4.5%
|
| Price: | 98.554
|
| Spread: | Treasuries plus 165 bps
|
| Price guidance: | Treasuries plus 175 bps area, plus or minus 5 bps
|
| Call feature: | Make-whole call before Dec. 15, 2046 at greater of par and Treasuries plus 25 bps; thereafter at par
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
