EA's leveraged buyout faces a bondholder battle

After completing its acquisition by Saudi Arabia's Public Investment Fund, Silver Lake, and Affinity Partners, Electronic Arts still faces creditors over previously issued bonds. The consortium borrowed $20 billion from JPMorgan as leveraged debt, which could weaken EA's credit profile and cost it its investment grade rating. According to The Wall Street Journal, one group of bondholders is seeking 101 percent repayment on two $750 million tranches totaling $1.5 billion, while EA is converting its bonds into assets resembling U.S. Treasury securities by splitting principal and interest.