JPMorgan’s $20 Billion EA Financing to Be Split Among Banks

Around 15 banks are likely to join the underwriting group, some as early as next week.

(Bloomberg) -- The consortium buying Electronic Arts Inc. is set to add more than a dozen banks to its underwriting group after JPMorgan Chase & Co. put up $20 billion of debt to bankroll the leveraged buyout.

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The deal, orchestrated by the buyers of the video-game maker — private equity firm Silver Lake Management, Saudi Arabia’s Public Investment Fund and Affinity Partners — would shift some risk off of JPMorgan by bringing other financial firms into the fold. A number of banks have signed non-disclosure agreements and have been through credit committees, according to people familiar with the matter who asked not to be identified because the talks are private.

Some banks will take around 10% of the deal each, or about $2 billion apiece, while others will take less, the people said. Around 15 banks are likely to join the underwriting group, some as early as next week. JPMorgan will keep around 40% of the deal, the people said.

Underwriters are expected to earn a fee of about 2.25% on the loans in the financing, some of the people said. Fees for bonds will be higher than those of loans, they added.

JPMorgan, EA and Silver Lake declined to comment. PIF and Affinity didn’t respond to requests for comment.

Banks have been vying for a slice of the roughly $500 million of fees tied to the financing. JPMorgan was the sole debt underwriter for the $55 billion acquisition, which is the largest commitment ever by one bank for a LBO. A buyout of this size is a major test of the banking industry’s capacity to orchestrate and allocate vast amounts of capital on a global scale.

Once the underwriting group is in place, the banks plan to sell the debt in the leveraged loan and high-yield bond markets in early 2026, according to the people.

The cross-border, dual-currency financing is structured with a $2.5 billion term loan A that will target investors looking to buy loans on a take-and-hold basis, the people said. That could attract attention from Middle Eastern and Asian banks, they said.

The financing is also set to comprise an $8 billion term loan B, $2.5 billion of unsecured bonds, $5 billion of secured bonds and a $2 billion liquidity facility, the people said. Still, the final structure of the transaction will depend on market conditions at the time of the launch, they added.

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