Microsoft Commences Private Exchange Offers And Activision Blizzard Commences Consent Solicitations
Portfolio Pulse from Happy Mohamed
Microsoft Corporation (MSFT) and Activision Blizzard, Inc. (ATVI) have announced the commencement of private exchange offers and consent solicitations in connection with their previously announced merger. Microsoft is offering to exchange any and all outstanding notes issued by Activision Blizzard for up to $3.65 billion aggregate principal amount of new notes issued by Microsoft and cash. Activision Blizzard is soliciting consents from eligible holders to adopt certain proposed amendments to each of the corresponding indentures governing the existing Activision Blizzard notes.
October 16, 2023 | 8:21 pm
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NEUTRAL IMPACT
Activision Blizzard's consent solicitations could potentially lead to changes in the terms of its existing notes, which could impact its financial position.
The consent solicitations could lead to changes in the terms of Activision Blizzard's existing notes, which could impact its financial position. However, the merger with Microsoft could potentially offset any negative impact.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100
NEUTRAL IMPACT
Microsoft's exchange offer could potentially increase its debt but also strengthen its position in the gaming industry through the merger with Activision Blizzard.
The exchange offer could increase Microsoft's debt, which may concern some investors. However, the merger with Activision Blizzard could strengthen Microsoft's position in the gaming industry, which could potentially offset any negative impact.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100