EA Bonds Rocked by Buyback Offer Tying Them to Treasuries

Electronic Arts Inc.’s bonds plunged Tuesday after the prospective buyers of the videogame maker launched a buyback offer that tied the notes’ prices to US Treasuries.

EA’s note due 2051 plunged 13.75 cents on the dollar to 78.25 cents on the dollar as of 2:39 p.m. in New York, according to Trace data. A bond that matures in 2031 fell 4.7 cents to 92 cents. Both are at their lowest level since the company’s buyout was announced in late September.

The slump came after EA’s acquiring group launched a tender offer for the $1.5 billion of notes that ...