Take-Two selling senior notes worth $2.7 billion to partly fund Zynga acquisition

Take-Two has announced that it will be selling senior notes worth $2.7 billion in a new public offering. This money will go to partly fund the company’s acquisition of mobile publisher Zynga.

• The offering consists of $1 billion 3.3% senior notes due in 2024, $600 million 3.5% senior notes due in 2025, $600 million 3.7% senior notes due in 2027, and $500 million 4% senior notes due in 2032.
• A senior note is a type of bond that gives an investor precedence over other debts in case a company declares bankruptcy and is forced into liquidation.
• The proceeds from the offering, along with Take-Two’s cash on hand, will go to fund the cash portion of the Zynga acquisition.
• The offering is expected to take place on April 14, “subject to satisfaction of customary closing conditions.”
• JP Morgan Securities, Wells Fargo Securities, BNP Paribas Securities, and BofA Securities were named as joint book-running managers for the offering.
• If the acquisition is not closed before January 9, 2023, or is terminated prior to this date, Take-Two will have to redeem the notes.

Take-Two announced the Zynga acquisition in January. The $12.7 billion deal is one of the largest game-related M&A deals ever, only behind Microsoft’s $68.7 acquisition of Activision Blizzard.