In a form SC TO-T/A filed today with the SEC, Electronic Arts indicated that it has received a commitment for up to USD 1 billion in senior unsecured term loan financing towards its attempted acquisition of Take-Two.
EA indicated that it expected the cost of the merger to be approximately USD 2.1 billion, and that as of March 31 it had cash and equivalents in the amount of USD 2.3 billion.
Morgan Stanley Senior Funding Inc, Morgan Stanley Bank, BNP Paribas, BNP Paribas Securities Corp, The Bank of Nova Scotia and KeyBank National Association have made the commitment to provide EA with the additional USD 1 billion in financing at any time prior to January 9, 2009.
EA would be required to repay the loan, plus interest, within a year of the date the funds were initially borrowed or by August 9, 2009.
All obligations of EA under the facility are expected to be unconditionally guaranteed, on a senior unsecured basis, by Take-Two once it is wholly-owned by EA and by each other domestic subsidiary of the company.