Take-Two to use $1 billion senior notes offering to repay its outstanding loans

Take-Two has announced a public sale of $1 billion in senior notes. The game publisher will use a portion of the money obtained through this offering to repay its loans.

According to the official announcement, the offering consists of $500 million of Take-Two’s 5% senior notes due 2026 and $500 million of the company’s 4.95% senior notes due 2028.

Take-Two expects to close the offering on April 14.

Net proceeds from the offering will be used to repay in full the publisher’s outstanding term loan of $350 million due June 21, 2023. The remaining sum will be allocated to “general corporate purposes”, including other outstanding indebtedness.

This is not the first time Take-Two is selling its senior notes. In April 2022, the publisher sold senior notes worth $2.7 billion to partly fund its $12.7 billion acquisition of Zynga.

Next month, Take-Two will report its financial results for the fourth quarter and the fiscal year ended March 31, 2023. As for FY2022, Take-Two’s net revenue declined 4% year-over-year to $3.5 billion. It also saw its profit down 29%, with CEO Strauss Zelnick saying the company will continue to mostly rely on organic growth.

Last year, Zelnick also noted he “doesn’t believe the entertainment business is recession proof or even necessarily recession resistant,” adding that the decline in player spending and increase in inflation will affect the games industry.