REDWOOD CITY, Calif.--(BUSINESS WIRE)--
Electronic Arts Inc. (NASDAQ:EA) today announced that it has agreed to
sell $600 million in aggregate principal amount of its 3.700% Senior
Notes due 2021 (the "2021 notes") at a price equal to 99.850% of the
principal amount thereof and $400 million in aggregate principal amount
of its 4.800% Senior Notes due 2026 (the "2026 notes" and, together with
the 2021 notes, the "senior notes") at a price equal to 99.669% of the
principal amount thereof. The offering is expected to close on February
24, 2016, subject to customary closing conditions.
The 2021 notes will mature on March 1, 2021 and bear interest at an
annual rate of 3.700% and the 2026 notes will mature on March 1, 2026
and bear interest at an annual rate of 4.800%.
EA intends to use the net proceeds from this offering for general
corporate purposes, including but not limited to, the payment of amounts
due upon conversion, maturity or repurchase of EA's 0.75% Convertible
Senior Notes due 2016, and the repurchase of EA shares, including under
EA's new $500 million stock repurchase program. EA expects to complete
this new program, which expires on May 31, 2016, over the next several
months.
J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith
Incorporated, BNP Paribas Securities Corp., Citigroup Global Markets
Inc. and Morgan Stanley & Co. LLC are acting as joint book-running
managers for the offering.
The offering is being made pursuant to an effective shelf registration
statement on Form S-3 that has previously been filed with the Securities
and Exchange Commission ("SEC"). A preliminary prospectus supplement,
together with the accompanying prospectus, related to the offering has
been filed with the SEC and is available on the SEC's website, http://www.sec.gov.
Copies of the preliminary prospectus supplement and the accompanying
prospectus related to this offering may be obtained by contacting: J.P.
Morgan Securities LLC at (212) 834-4533, Merrill Lynch, Pierce, Fenner &
Smith Incorporated toll free at (800) 294-1322, BNP Paribas Securities
Corp. toll free at (800) 854-5674, Citigroup Global Markets Inc. toll
free at (800) 831-9146 or Morgan Stanley & Co. LLC toll free at (866)
718-1649.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities described herein, nor
shall there be any sale of these securities in any jurisdiction in which
such an offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
jurisdiction.
About Electronic Arts
Electronic Arts (NASDAQ:EA) is a global leader in digital interactive
entertainment. The Company delivers games, content and online services
for Internet-connected consoles, personal computers, mobile phones and
tablets. EA has more than 300 million registered players around the
world.
In fiscal year 2015, EA posted GAAP net revenue of $4.5 billion.
Headquartered in Redwood City, California, EA is recognized for a
portfolio of critically acclaimed, high-quality blockbuster brands such
as The Sims™, Madden NFL, EA SPORTS™ FIFA, Battlefield™, Dragon Age™ and
Plants vs. Zombies™.
EA SPORTS, The Sims, Dragon Age, Plants vs. Zombies and Battlefield are
trademarks of Electronic Arts Inc. and its subsidiaries. John Madden,
NFL and FIFA are the property of their respective owners and used with
permission.
Safe Harbor for Forward-Looking Statements
Some statements set forth in this press release regarding Electronic
Arts' offering of senior notes, contain forward-looking statements that
are subject to change. Statements including words such as "anticipate",
"believe", "estimate" or "expect" and statements in the future tense are
forward-looking statements. These forward-looking statements are subject
to risks and uncertainties that could cause actual events or actual
future results to differ materially from those set forth in the
forward-looking statements, including the following: Electronic Arts'
ability to effectively execute its business and capital plans, changes
in general economic and market conditions, including the stock market,
changes in interest rates, including interest rate resets and other
factors described in Electronic Arts' SEC filings (including the
preliminary prospectus supplement and accompanying prospectus filed in
relation to the offering of senior notes, Electronic Arts' latest
Quarterly Report on Form 10-Q for the fiscal quarter ended December 31,
2015 and Electronic Arts' Annual Report on Form 10-K for the year ended
March 31, 2015). If any of these risks or uncertainties materializes,
the potential benefits of the offering of senior notes may not be
realized, Electronic Arts' operating results and financial performance
could suffer, and actual results could differ materially from the
expectations described in these forward-looking statements. There is no
assurance that the offering of the senior notes or the repurchase of
shares will be completed or completed as described above. These
forward-looking statements speak only as of the date of this press
release. Electronic Arts assumes no obligation to update these
forward-looking statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160217006652/en/
Electronic Arts
Chris Evenden, 650-628-0255
VP, Investor
Relations
cevenden@ea.com
or
John
Reseburg, 650-628-3601
VP, Corporate Communications
jreseburg@ea.com
Source: Electronic Arts Inc.
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