EA Took an Unfavorable $20 Billion High‑Interest Loan for Its Deal
JPMorgan provided part of the financing for the transaction.
Bloomberg reporter Jason Schreier claims that EA secured a $20 billion loan to complete its move to private ownership, and that JPMorgan issued the financing at a high interest rate.
The $20 billion of debt laid out in EA’s agreement is expected to carry a B rating — effectively classified as “junk” — meaning it is speculative, high-risk, and typically subject to elevated interest rates. These are the loans the new EA will have to service.
Experts warn that while such financing can provide immediate capital, it may undermine long-term financial stability and even aggravate the company’s position.
Source: iXBT.games
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