Activision to offer $2.5B in senior notes to help finance Vivendi deal

|About: Activision Blizzard, Inc (ATVI)|By:, SA News Editor

Activision Blizzard (ATVI +4.7%) will offer $1B in 2020 senior secured notes, $1B in 2021 senior unsecured notes, and $0.5B in 2023 senior unsecured notes.

Proceeds will be used to help finance Activision's repurchase of 429M shares (38.2% of the company) from Vivendi.

Separately, an investor group led by CEO Bobby Kotick and Co-Chairman Brian Kelly plans to purchase 172M shares (15.3%) from Vivendi. The consortium includes Tencent, Fidelity Management, Davis Advisors, and Leonard Green and Partners.

Moody's assigned Activision a Ba1 rating and ratings of Ba2 and Ba3 on its debt issuances.

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