By Kenneth Lim
Boston, July 15 - Electronic Arts Inc. priced $550 million of five-year convertible senior notes on Thursday at the rich end of price talk at par to yield 0.75% with an initial conversion premium of 35%, according to a market source.
The notes were sold at par and were talked at a coupon of 0.75% and an initial conversion premium of 32.5% to 35%.
There is an over-allotment option for an additional $82.5 million.
J.P. Morgan Securities LLC and Morgan Stanley & Co. Inc. were the bookrunners of the Rule 144A offering.
The notes are non-callable and may not be put.
The securities have standard dividend and takeover protection.
Proceeds will be used to pay part of the company's $1.3 billion cash-and-stock bid for PopCap Games, Inc. and to fund convertible note hedge transactions. If the PopCap deal is not completed, the proceeds will be used for general corporate purposes.
Electronic Arts is a Redwood City, Calif.-based video game maker.
| Issuer: | Electronics Arts Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc.
|
| Amount: | $550 million
|
| Greenshoe: | $82.5 million
|
| Maturity: | July 15, 2016
|
| Coupon: | 0.75%
|
| Price: | Par
|
| Yield: | 0.75%
|
| Conversion premium: | 35%
|
| Conversion price: | $31.74
|
| Conversion ratio: | 31.5075
|
| Contingent conversion: | 130%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 0.75%, up 32.5%-35%
|
| Pricing date: | July 14 after the close
|
| Settlement date: | July 20
|
| Distribution: | Rule 144A
|
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