Activision Blizzard Prices $1.5 Billion of Senior Unsecured Notes
September 14 2016 - 6:41PM
Business Wire
Activision Blizzard, Inc. (NASDAQ: ATVI) today announced the
pricing of two series of senior unsecured notes in an aggregate
principal amount of $1.5 billion, in a private offering, consisting
of $650 million of 2.300% senior notes due 2021 and $850 million of
3.400% senior notes due 2026. The senior notes due 2021 will be
issued at a price equal to 99.878% of their principal amount. The
senior notes due 2026 will be issued at a price equal to 99.614% of
their principal amount.
The offering is expected to close on September 19, 2016, subject
to customary closing conditions.
Each series of notes will be guaranteed on an unsecured senior
basis by each of Activision Blizzard's subsidiaries that is a
guarantor under its senior credit facilities. Each series of notes
will be effectively subordinated to all of Activision Blizzard's
future senior secured debt, if any, to the extent of the value of
the assets securing such debt.
Activision Blizzard intends to use the net proceeds of
approximately $1.48 billion from the offering, together with cash
on hand, to redeem all $1.5 billion aggregate principal amount of
its existing 5.625% senior notes due 2021 at a redemption price of
104.219%, plus accrued and unpaid interest.
The notes and the related guarantees will not be registered
under the Securities Act of 1933 (the “Securities Act”) or any
state securities law and may not be offered or sold in the United
States absent registration or an applicable exemption from
registration under the Securities Act and applicable state
securities laws. The notes and the related guarantees will be
offered only to persons reasonably believed to be qualified
institutional buyers under Rule 144A of the Securities Act and
outside the United States under Regulation S of the Securities
Act.
This press release shall not constitute an offer to sell, or the
solicitation of an offer to buy, any securities, nor shall there be
any sales of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such
jurisdiction.
About Activision
Blizzard
Headquartered in Santa Monica, California, Activision Blizzard
has operations throughout the world, and its games are played in
196 countries.
Cautionary Note Regarding Forward-Looking Statements: The
statements contained in this press release that are not historical
facts are forward-looking statements. Forward-looking statements
are subject to business and economic risk, reflect management's
current expectations, estimates and projections about our business,
and are inherently uncertain and difficult to predict. The company
cautions that a number of important factors could cause Activision
Blizzard's actual future results and other future circumstances to
differ materially from those expressed in any forward looking
statements. Such factors include, but are not limited to,
Activision Blizzard's ability to consummate the offering in the
currently anticipated timeframe or at all, the negotiations between
Activision Blizzard and the initial purchasers and the other
factors identified in "Risk Factors" included in Part I, Item 1A of
our Annual Report on Form 10-K for the year ended December 31, 2015
and subsequent quarterly reports on Form 10-Q. The forward-looking
statements in this press release are based on information available
to the company at this time and we assume no obligation to update
any such forward-looking statements. Although these forward-looking
statements are believed to be true when made, they may ultimately
prove to be incorrect. These statements are not guarantees of our
future performance and are subject to risks, uncertainties and
other factors, some of which are beyond our control and may cause
actual results to differ materially from current expectations.
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version on businesswire.com: http://www.businesswire.com/news/home/20160914006431/en/
Activision Blizzard, Inc.Amrita AhujaSVP, Investor
Relations310-255-2075Amrita.Ahuja@Activision.comorMary OsakoSVP,
Global Communications424-322-5166Mary.Osako@Activision.com
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