Microsoft Activision Blizzard Acquisition
Microsoft has launched an exchange offer for Activision Blizzard’s outstanding debt as part of its acquisition of the company.
Microsoft will replace the Activision securities currently held by bondholders with up to $3.65 billion of new notes and a cash consideration, according to a statement.
As part of the exchange offer, Activision will be soliciting consents from eligible bondholders “to adopt certain proposed amendments” to the existing bond that will get rid of certain covenants, restrictive provisions and events of default, according to the release.
The early tender date for the offer is October 27, at which time bondholders would be eligible to receive the total exchange consideration. The last day for bondholders to submit tender offers is November 14. Both dates are able to be extended by the company.
On Monday, Microsoft completed its $69 billion purchase of Activision after a nearly two-year fight with global regulators threatened to scuttle the deal. The transaction was able to close after Microsoft made alterations to its merger agreement to win over UK authorities.
The US Federal Trade Commission, which lost an attempt to block the deal in court, continues to pursue legal action in its own administrative hearing. That could still force the two companies to unwind the merger if the commission is successful.
