EA bondholders demand early repayment after $20B leveraged buyout

After Electronic Arts was acquired by a consortium of Saudi PIF, Silver Lake and Affinity Partners, the publisher took on $20 billion in debt from JPMorgan. Some bondholders are now demanding 101% repayment on two $750 million tranches, fearing a credit rating downgrade. EA is restructuring its bonds into Treasury-like assets.

• The EA buyout is the largest leveraged buyout ever
• $20 billion in debt was borrowed from JPMorgan to fund the deal
• Bondholders demand 101% repayment on $1.5 billion in tranches
• EA is splitting bonds into principal and interest components