JPMorgan Chase (JPM.US) adjusts Electronic Arts Inc. (EA.US) acquisition debt structure, increases the US dollar loan amount to 5 billion US dollars.

Wall Street banks led by JPMorgan Chase recently revised the debt financing plan for the acquisition of electronic game developer Electronic Arts Inc. (EA.US), increasing the issuance size of the US dollar portion to $5 billion. According to sources familiar with the matter, the syndicate increased the size of the loan by $1 billion, while reducing other US dollar-denominated secured debt by an equal amount, bringing it down to $3.75 billion. In the current environment where banks need to sell high-risk bonds related to acquisitions in turbulent markets, banks are attracting a broader group of investors through various credit markets such as leveraged loans and high-yield bonds, with some financing involving different currencies. JPMorgan had promised to provide a record $20 billion financing for the Electronic Arts Inc. acquisition last year, drawing attention on Wall Street. Previously, due to a weak loan market, the bank had shifted some of the debt financing for this acquisition to high-yield bonds. As of last Friday, Electronic Arts Inc. had attracted about $25 billion in demand for the approximately $15 billion in loans and bonds. On Monday, US President Trump stated that he would postpone a strike on Iranian energy facilities following productive talks aimed at ending hostilities, boosting credit markets. However, the market still appears fragile, with concerns over AI disruption and ongoing Middle East conflicts putting pressure on it. In recent adjustments to other leveraged financing related to mergers and acquisitions, Nexstar Media Group Inc. (NXST.US) revised the debt financing plan for the acquisition of fellow television station owner Tegna Inc. Bank of America Corp (BAC.US)-led syndicate increased the bond issuance proportion in the total $6.9 billion debt deal last Friday and reduced the leveraged loan portion by $1 billion. The acquisition of Electronic Arts Inc. is by a consortium consisting of private equity firm Silver Lake Capital, the Saudi Public Investment Fund, and Affinity Partners managed by President Trump's son-in-law Jared Kushner. The deal values this video game company at approximately $55 billion.