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The Oak-Eagle consortium formed by Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, and Jared Kushner’s Affinity Partners has issued a tender offer targeting Electronic Arts’ (EA) $1.5 billion of senior unsecured notes.
The tender is priced flat to the yield on the corresponding on-the-run US Treasuries (T+0) and is inclusive of the 5pts early tender premium. The offer is subject to the completion of the acquisition of US-based EA by the consortium, expected between April 1, 2026 and June 30, 2026.
The notes include a $750 million issuance with a 1.85% security due in February 2031, with a reference security set at 3.75% over US Treasuries, due 31 January 2031.
The remaining $750 million note carries a 2.95% security due February 2051, with a reference security of 4.625% UST due 15 November 2055.
Oak-Eagle is also seeking the consent of existing EA holders to remove all restrictive covenants from the non-participating EA notes.
The final settlement date is March 16.
JP Morgan is the sole lead dealer manager and consent agent on the tender offer.
The $55 billion public-to-private deal for videogame developer EA in September set a record for the largest leveraged buyout in history. The deal was financed through a combination of $36 billion in cash along with equity already held by the Saudi sovereign wealth fund, as well as $20 billion in debt financed by JP Morgan.
(Writing by Bindu Rai, editing by Seban Scaria)
