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Take-Two selling $2.7bn senior notes to fund Zynga acquisition

Public offering to be made next week, publisher aiming to complete acquisition by January 9, 2023

Take-Two Interactive is preparing to raise money towards its upcoming acquisition of mobile games giant Zynga.

In a note to investors, the publisher announced it will be selling $2.7 billion senior notes -- a type of bond that, in the event of a company going bankrupt, takes priority over other debts -- in an underwritten public offering.

The offering is expected to take place on Thursday, April 14, subject to "satisfaction of customary closing conditions."

Take-Two will use the net proceeds raised to fund part of the cash portion of its $12.7 billion acquisition of Zynga, which was announced earlier this year.

On offer will be $1 billion 3.3% senior notes due in 2024, $600 million 3.55% senior notes due in 2025, $600 million senior notes due in 2027, and $500 million 4% notes due in 2032.

Four companies have been named as joint book-running managers for the offering: JP Morgan Securities, Wells Fargo Securities, BNP Paribas Securities and BofA Securities.

Any remaining funds will be used for "general corporate purposes."

Take-Two will be required to redeem these notes if the Zynga acquisition is not completed on or before January 9, 2023.

We spoke to CEO Strauss Zelnick about the Zynga acquisition earlier this year.

At the time it was announced, the $12.7 billion deal was the biggest games acquisition announced in decades. For one week.

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