Activision Blizzard, Inc. Announces Syndication of $2.5 Billion Term Loan Credit Facility
September 13 2013 - 11:00PM
Business Wire
Activision Blizzard, Inc. (NASDAQ: ATVI) (the “Company”)
announced today the completion of the syndication of a seven-year
secured term loan credit facility totaling $2.5 billion (“Term Loan
B”). The Company expects to also secure a revolving credit facility
of $250 million. The closing of the Term Loan B and the revolving
credit facility are subject to customary closing conditions.
The borrowings under the Term Loan B, along with the proceeds
from the issuance of the recently priced $2.25 billion aggregate
principal amount of senior unsecured notes, are expected to total
$4.75 billion. The weighted average interest rate for all such
indebtedness is expected to be less than 5%. The Term Loan B will
be secured by certain of the Company’s assets.
The Company intends to use the net proceeds of the Term Loan B,
along with cash on hand and proceeds from the notes offering to:
(i) finance the consideration to be paid by the Company to Vivendi
S.A., a société anonyme organized under the laws of France (and
together with its affiliates, “Vivendi”) in connection with the
transactions contemplated by the stock purchase agreement entered
into on July 25, 2013 among the Company, Vivendi and ASAC II LP, an
exempted limited partnership established under the laws of the
Cayman Islands and acting by ASAC II LLC, its general partner (the
“Transactions”); and (ii) pay the Company’s fees and expenses
incurred in connection with the Transactions.
About Activision Blizzard:
Activision Blizzard, Inc. is the world’s largest and most
profitable independent interactive entertainment publishing
company. It develops and publishes some of the most successful and
beloved entertainment franchises in any medium, including Call of
Duty®, Skylanders®, World of Warcraft®, StarCraft® and Diablo®.
Headquartered in Santa Monica California, it maintains operations
throughout the United States, Europe, and Asia. Activision
Blizzard, Inc. develops and publishes games on all leading
interactive platforms and its games are available in most countries
around the world.
Forward-looking statements:
This press release contains forward-looking statements
including, but not limited to, those relating to the issuance of
the notes, the Transactions and the entry into, and interest rate
to be agreed to under, the Term Loan B and whether or not the
Company will consummate the issuance of notes or the other
transactions described herein. The forward-looking statements in
this release are based upon information available to the Company as
of the date of this release, and the Company assumes no obligation
to update any such forward-looking statements. Although these
forward-looking statements are believed to be true when made, they
may ultimately prove to be incorrect. These statements are not
guarantees of the future performance of the Company and are subject
to risks, uncertainties and other factors, some of which are beyond
its control and may cause actual results to differ materially from
current expectations.
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