Investors are bidding up Electronic Arts Inc. dollar-denominated debt that priced on Tuesday to help fund the video game maker’s record buyout.
Its 8.75% unsecured bond reached 104.25 cents on the dollar Wednesday while its 7.25% secured note got as high as 102.88 cents, according to Trace data. Both securities priced at 100 cents, and at yields roughly a percentage point higher than comparably rated bonds.
EA’s $6.13 billion term loan, which priced at 98.50 cents, climbed a full cent by midday Wednesday, according to people familiar with the matter.
WATCH: Bloomberg’s Aaron Weinman discusses banks selling almost $15 billion of risky debt to help fund the record leveraged buyout of video game-maker Electronic Arts. Source: Bloomberg
The first few days ...
