| NEW YORK, Sept 11
NEW YORK, Sept 11 Activision Blizzard Inc
cut pricing on its new $2.5 billion, seven-year
covenant-lite term loan B, sources told Thomson Reuters LPC.
The loan is part of a $5 billion financing package backing
Activision's plan to spin itself off from Vivendi and
buy back shares.
The $2.5 billion TLB is now guided at LIB+250, with a 75bp
Libor floor and a 99.5 discount. Previous price talk on the TLB
was LIB+275-300. The Libor floor and issue price are unchanged.
The TLB will carry 101 soft call protection for six months. The
loan also includes a $250 million revolver.
Recommitments are due by the end of the day. Allocations are
expected Thursday morning. Bank of America Merrill Lynch and JP
Morgan lead the deal.
The new TLB and RC run alongside a $1.5 billion, eight-year
note issuance and a $750 million, 10-year note issuance.
During syndication, the company cancelled a $1 billion,
seven-year note and increased the other loan and note tranches
by the same amount.
Activision plans to fund the purchase of 429 million of its
shares from Vivendi with a combination of $1.2 billion in cash
on hand and new debt, according to a company filing. The
transaction is expected to close by the end of September.
Activision is buying the shares back for $5.83 billion, or
$13.60 per share.
Separately, Activision CEO Bobby Kotick and Co-Chairman
Brian Kelly will purchase 172 million shares for $2.34 billion.
After the transaction, Vivendi will no longer be the majority
shareholder, but will retain a stake of 83 million shares, or
approximately 12 percent.
Activision Blizzard Inc is a worldwide online, personal
computer, video game console, handheld, and mobile game