Video game publisher Electronic Arts Inc. said Friday it received debt financing commitments of up to $1 billion for its $2 billion tender offer for smaller rival Take-Two Interactive Software Inc.
EA said in a regulatory filing it has received a commitment from Morgan Stanley, the Bank of Nova Scotia and others for senior unsecured term loan financing of up to $1 billion for the offer, which expires May 16. EA is offering $25.74 for each share of Take-Two.
EA expects to pay about $2.1 billion for Take-Two's shares and related expenses. Take-Two has repeatedly called the offer too low, but has also said it was willing to enter formal takeover talks on April 30. The loan is valid until Jan. 9, 2009.
Jeff Brown, a spokesman for EA, said the financing was a procedural matter and not a sign of any new developments regarding the proposed acquisition.
Shares of Redwood City, Calif.-based EA rose 3 cents to close at $52.61. New York-based Take-Two's shares closed up 7 cents at $26.67.
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