Electronic Arts Inc. Completes Merger; New Credit Facility and Notes

What Happened
Electronic Arts Inc. (the Company) announced completion of its merger on August 4, 2026 and disclosed the financing package used to fund the transaction. The Company’s new parent (Parent) entered into a Credit Agreement and closed a multi‑tranche notes offering earlier in April 2026. The financing includes large first‑lien term loan facilities, a revolving credit line, and both secured and unsecured notes that refinance prior indebtedness.

Key Details

• Credit facilities (closed Aug 4, 2026): First‑lien Term Loan B funded with a $6,125.0 million tranche and a €1,725.0 million tranche; $3,250.0 million first‑lien Term Loan A funded; and a $500.0 million first‑lien revolving credit commitment. Obligations are guaranteed by certain domestic subsidiaries and secured by substantially all assets (subject to customary exclusions).
• New Notes (closed Apr 8, 2026): $2,875.0M of 7.250% senior secured USD notes due July 1, 2033; €1,080.0M of 6.250% senior secured EUR notes due July 1, 2033; and $2,500.0M of 8.750% senior unsecured notes due July 1, 2034. Interest accrues from April 8, 2026 and is payable semi‑annually (Jan 1 & Jul 1).
• Use of proceeds: Net proceeds from the New Notes, borrowings under the Credit Facilities, equity contributions and cash on hand were used to pay the merger cash consideration and to repay, refinance or defease existing indebtedness and related fees/expenses.
• Existing notes / tender offers: Tender offers that began Feb 10, 2026 and expired July 30, 2026 resulted in $68.83M of 2031 notes and $7.922M of 2051 notes tendered. Remaining outstanding after offers: $681.17M of 2031 notes and $742.078M of 2051 notes. The Company defeased certain remaining obligations under the existing notes indenture by depositing U.S. government securities into a trust.

Why It Matters
This filing shows EA completed a significant corporate transaction and materially changed its capital structure. The company (through its Parent) now carries billions of dollars of new secured and unsecured debt, with the new debt secured by most assets and guaranteed by key subsidiaries. For investors, that means higher interest obligations and new covenants tied to the credit and indenture documents, which can affect flexibility and financial metrics (leverage, interest expense, and liquidity). The filing also confirms the Company has taken steps to refinance and defease certain prior debt, reducing some legacy obligations.