Banks prepare to offload $18bn in debt tied to EA take-private deal
- Goldman Sachs leads the syndicate to market the $10 bn high‑yield bond, citing strong demand for tech‑linked credit (Bloomberg).
- Morgan Stanley and Citigroup are offloading $8 bn of senior secured loans tied to the EA deal, aiming to recycle capital (Reuters).
- Analysts warn that AI‑induced volatility could dampen appetite for junk, while the deal could set a benchmark for future tech take‑privates (WSJ).
- Investors are eyeing the spread versus Treasury yields, with the bond priced at 7.5% over, reflecting a premium for perceived risk (Bloomberg).
Banks are lining up an $18 billion junk‑bond and loan package to fund the take‑private of Electronic Arts, betting that investors will swallow high‑yield risk even as AI‑driven market turbulence rattles confidence.
