Activision Closes Private Offering Of $2.25 Bln Of Senior Notes Into Escrow

(RTTNews) - Activision Blizzard, Inc. (ATVI) announced the closing of its previously announced private offering of $1,500 million aggregate principal amount of 5.625% senior notes due 2021 and $750 million aggregate principal amount of 6.125% senior notes due 2023 into escrow.

In connection with the issuance of the Notes, the Company entered into an escrow agreement with Wells Fargo Bank, National Association, as escrow agent and as trustee under the indenture governing the Notes.

The company said the proceeds of the offering were deposited, pursuant to the Escrow Agreement, into a segregated account pending completion of the transactions contemplated by the stock purchase agreement entered into on July 25, 2013, among the company, Vivendi S.A., a société anonyme organized under the laws of France and ASAC II LP, an exempted limited partnership established under the laws of the Cayman Islands and acting by ASAC II LLC, its general partner, which is terminable by the parties on or after October 15, 2013 if the Transactions have not closed by such date.

Upon satisfaction of the conditions to the release of the funds from escrow, including, among other things, that the conditions to the Transactions have been satisfied or waived, the escrow funds will be used, along with cash on hand at the company and proceeds from borrowings under the Term Loan B to finance the consideration to be paid by the company to Vivendi in connection with the transactions contemplated by the SPA.