EA Faces Bondholder Demand for 101% Repayment on $1.5 Billion
Electronic Arts is restructuring two $750 million bond tranches after its leveraged buyout, and one bondholder group is demanding 101 percent repayment, according to Bloomberg.
Electronic Arts is restructuring its previously-issued bonds and is facing a dispute with bondholders over repayment following its leveraged buyout, according to Bloomberg. One group of bondholders is demanding 101 percent repayment on two $750 million tranches, totaling $1.5 billion.
As part of the restructuring, EA is transforming its bonds into assets resembling U.S. Treasury securities by splitting principal and interest.
The buyout was finalized in August 2025 by Saudi Arabia's Public Investment Fund, Silver Lake, and Affinity Partners. The consortium borrowed $20 billion from JPMorgan to finance the acquisition as leveraged debt.
Earlier in 2025, Electronic Arts failed to buy back all bondholders' bonds in time, as reported by Bloomberg.
Quick answers
How much are bondholders demanding from Electronic Arts?
One group of bondholders is demanding 101 percent repayment on two $750 million tranches, totaling $1.5 billion.
What is EA doing with its bonds?
EA is transforming its bonds into assets resembling U.S. Treasury securities by splitting principal and interest.
Who acquired Electronic Arts?
Saudi Arabia's Public Investment Fund, Silver Lake, and Affinity Partners finalized the acquisition in August 2025, borrowing $20 billion from JPMorgan to finance the leveraged buyout.