EA has announced an offering of $550 million in convertible senior notes to help finance its acquisition of PopCap.
The notes will be sold in a private placement to "qualified institutional buyers", converting into cash or EA common stock, at a rate of $31.74, on 15 July 2016.
They will accrue interest at 0.75 per annum starting in 2012, payable on 15 January and 15 July annually. EA also expects to offer the initial purchasers the option to purchase a further $82.5 million in notes to cover overallotments
A statement issued by the company reads: "EA intends to use a portion of the net proceeds of the offering to pay a portion of the cash consideration for its acquisition of PopCap Games, Inc.. To the extent the acquisition of PopCap is not consummated, EA intends to use such portion of the net proceeds for general corporate purposes."
EA estimates the net proceeds from the deal at $536.6 million, or $617.3 million if the initial purchasers exercise their overallotment option in full.
The placement is expected to close on Wednesday 20 July.